Settlement Agreement or Employment Tribunal Claim?

If you believe you have received poor treatment in the workplace by your employer, or any other grounds for a claim, you will be faced with the choice of whether you should pursue an Employment Tribunal Claim or try to settle your claim, usually via a ‘settlement agreement’ contract.

Let’s break down the most important factors to consider when deciding which avenue to take.

1. What potential claims do you have, and how likely are those claims going to be successful?
2. What outcome are you seeking from an Employment Tribunal Claim?
3. Is settlement an option for you, or is an Employment Tribunal Claim a point of principle?
4. What impacts could a claim have on you in the long term?
5. How committed are you to the process an employment tribunal claim?

What potential claims do you have and how likely are those claims going to be successful?

The first step is to determine what potential claims you may actually have based on the circumstances of your case. Have you been a victim of workplace harassment, discriminated against, victimised or unfairly dismissed?

The nature of claims you choose to pursue will of course have a significant impact on your chances of success and the value of any Employment Tribunal Claim. You will also need sufficient evidence to reinforce the particular claim(s).

What outcome are you seeking from the Employment Tribunal Claim?

Generally speaking, if you are only pursuing an Employment Tribunal Claim to seek compensation (a financial payment),  it is more likely that you will be able to settle your claim. If you are looking for another form of remedy, however, then you might have to seek this through a successful claim in the Employment Tribunal (as it is normally difficult to persuade an employer to re-engage you through a settlement agreement).

Is settlement an option for you or is the Employment Tribunal Claim a point of principle?

There is very little point in entering into a settlement agreement negotiation if you aren’t interested in a settlement. If you are strongly set on not settling from the get-go, then your time and effort are best focused on preparing your Employment Tribunal claim.

On the other hand, if you are open to settlement, then it is best to approach the other party at an early stage to negotiate and agree upon the terms of the settlement.

What impacts could a claim have on you in the long term?

The public nature of an Employment Tribunal should be considered as early as possible. All Employment Tribunal judgements are now published online and the parties to the litigation will therefore want to think carefully about what impact any publicity could have on their careers or business.

How committed are you to the process of the employment tribunal claim?

The process of an employment tribunal claim can be stressful and daunting. However, using a no win no fee employment solicitor like ourselves, your stress can be alleviated as we guide you through the entire process from initial assessment to making a claim.