SUMMARY:  Should you sign or not? Learn how to deal with a financial settlement agreement and how family lawyers can help.

Increase in Settlement Agreements Due to Covid-19 – Advice to Employees

In the wake of the pandemic, many businesses have closed. Plenty of companies are also cutting down their workforce to reduce their costs. That’s led to a lot of settlement agreements. If you or your spouse have been offered those settlement agreements, here are a few tips to help you figure out what to do next.

Settlement Agreement: What is It?

A financial settlement agreement is a legally binding contract that stipulates the employee must give up certain employment rights against their employer in exchange for financial compensation. Once you sign that contract, you won’t be able to take legal action against your former employer anymore. A settlement agreement is typically awarded to end an employment relationship. It must be a mutual agreement and is usually granted to resolve an ongoing dispute.

What Does the Agreement Cover?

Each financial settlement agreement is different. But, overall, they deal with the same issues. These issues cover any or all of the following:

Leaving arrangements. That states the employee’s last day at work. It also mentions whether the employee has a notice period or not.How much is payable to the employee?The tax treatment for the money that the employee will receive.Waiver signed by the employee that relieves the employer of any charges of wrongful or unfair termination as well as unpaid wages, breach of contract, discrimination, and more. References for the employee.Return of any property issued to the employee during the employment period.

Benefits of Signing the Agreement

A settlement agreement should benefit both sides. For employees, there are three main benefits: compensation, peace of mind, and reputation. For employers, the settlement protects their reputation. It prevents former employees from talking badly about the company which could impact their hiring chances. Also, the company could get in trouble if former employees file a charge against the company or owner.

Do You Have to Accept a Settlement Agreement?

If you aren’t happy with the offer, don’t sign it. If you’re unsure of your decisions, though, consider consulting a lawyer. Find a property settlement attorney to provide the specialized assistance you need. Choose a firm with skilled lawyers. Once a lawyer has been assigned to your case, find out how many years of experience the lawyer has. Does the lawyer have the proper credentials to help you? Has the lawyer handled similar cases in the past? How many have they won?

Why Should You Hire a Lawyer?

A lawyer can help you deal with the settlement agreement. If you are already going through a divorce or mediation with your partner only to receive a settlement offer at work, then you could hit two birds with one stone by hiring the same law firm to help you. Some family law firms also provide property settlement services. You’ll want to consider that when you make an appointment with a lawyer. A family lawyer can also help you improve the terms and conditions for your own divorce property settlement agreement until you’re happy with the outcome.

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