Some studies suggest that the settlement rate in the United States is around 95%, but this statistic might be lower.
Regardless, if you’re dealing with settlement agreements, you may be wondering how they work and what factors are important to keep an eye on.
Thankfully, we have the perfect guide on settlement agreements, so keep reading to find out all you need to know.
1. Financial Compensation
What are settlement agreements? They’re basically a commercial negotiation that you’ll be compensated. There’s not a specific amount that’s required, but it will depend on a few things.
It could be determined by how strong your legal claim is and how good your lawyer is. It will also depend on how badly the company doesn’t want to have the trial go to court.
The nature of the argument and any bills or costs associated with the claim will also be factored in.
2. Terms
If you don’t have a lawyer, you need to hire one. They’ll be able to understand and negotiate the terms of the settlement agreement.
The terms are dependent on the employee and the employer, but they’ll also factor in any specific circumstances. While you could argue the terms for yourself, it’s better to leave that up to the lawyer.
The contract should document the terms in the written settlement agreement. You should also have a pre-written reference, a confidentiality clause, a mirror clause, and a non-derogatory clause in settlement.
3. Taxes
When you’ve settled, you’ll need to pay some of that back in taxes. However, it will depend on different factors of the settlement.
For example, if you were entitled to your salary or holiday pay, this is all taxable up to a certain amount.
4. Duration
Settlements can last for a while, and there’s no set limit for them. However, employees need to have reasonable time to read over the settlement before signing. Normally, you should have at least ten days so you can go over it with your lawyer.
Sometimes, the agreement will be faster to get to a tribunal. In a tribunal, it’ll take six months to get a hearing. So if you want to resolve the issue quickly, a settlement is your best option.
5. Contingencies
A contingency will require you to meet certain requirements in order to get that settlement money.
There are almost always contingencies in the contract, and you need to make sure that you understand them completely. For example, if you’re receiving money, you need to figure out if you’re getting it in installation payments or in a lump sum.
Discover More About Settlement Agreements
These are only a few things to know about settlement agreements, but there are many more factors to consider.
We know that going through the process of a settlement can be overwhelming, but it doesn’t have to be.
Explore our website to find even more great information and help!
