When negotiating a settlement agreement, you must remain calm and respectful. You must also understand your employer’s position and what is being offered.
The most common terms in a settlement agreement include payment, confidentiality, non-compete clauses, and references. Ultimately, the aim is to secure a fair offer that reflects your claims.
Don’t Be Afraid to Ask Questions
Employees rarely experience settlement agreements. Therefore, it is common for people to feel intimidated when presented with such an opportunity. This is why it’s essential to approach the situation clearly and not let emotion take over.
The first step is to understand what your employer wants to offer. This may include details of your financial compensation, a list of any claims you are waiving, and other critical practical terms. Your solicitor can talk you through this in more detail.
It is also essential to think about non-financial matters, including the reference and any restrictive covenants in your contract (again, your solicitor can help here). You should know what you want to achieve; writing this down is advisable. This will make the initial call with your solicitor more productive, and they can comment on whether what you are asking for is realistic. They will also tell you if it is necessary to obtain independent legal advice on the agreement – which your employer should pay for.
Don’t Be Afraid to Accept Offers
Being given a settlement offer that is significantly less than you expected can be highly upsetting and, in some cases, very stressful. However, you need to step back and consider why your employer wants to end your employment with them.
Setting the agenda in a negotiation is essential, which means thinking about what issues you want to discuss and their order. It is also helpful to know how much you need from the offer, including any accrued but untaken holiday and your net monthly salary (what you receive, after tax, each month).
You should also have a realistic idea about what you are willing to compromise on, if necessary. This can help you get a better deal. The final point to remember is that you should always instruct a solicitor for independent advice on the terms of a settlement agreement Brick NJ, before signing. Your employer will usually cover this. Having this expertise and support in the negotiations is often crucial.
Don’t Be Afraid to Make Offers
Giving your employer a chance to make an offer is often a good idea. This helps to keep the negotiation process moving forward and can lead to a quicker resolution.
Your employer will generally want to ensure that you are offered a reasonable sum to compensate you for the loss of your job and any other losses, such as untaken holiday pay or other benefits. Your employer will also look at their costs to conclude the matter, including legal fees.
Any settlement agreement requires you to receive independent advice on the terms and effects from a lawyer (your employer usually covers it). Instructing a specialist employment solicitor before beginning the negotiations is a good idea, as they can indicate how much your employer should be willing to pay. They can also help draft any settlement agreement’s terms, including confidentiality, non-compete, and non-disparagement clauses.
Don’t Be Afraid to Negotiate
If you understand that your employer is waiting for a counteroffer before making an offer, do not be afraid to push back. This will help maximize your position and give them a reason to improve their initial offer.
Many negotiators recommend that you plan the issues you want to discuss and the order of those discussions. This enables you to focus negotiations on the most essential items rather than being distracted by your opponent’s agenda.
It is also worth considering your negotiating position, including your ideal settlement figure and the least you would accept (excluding untaken holiday and other benefits owed to you such as references, private health, shares, etc.). This will enable you to determine whether or not what you are asking for is realistic. You will be more confident in your stance and more likely to secure an acceptable outcome.
