A Deed of Release is a document presented by an employer to an employee with the intention of settling any employment dispute that is in existence at the time the document is signed or which may arise in the future. This type of arrangement is used to terminate all potential issues between the employer and employee now or in the future. The employer usually offers to pay a fixed sum of money to the employee in return for the employee agreeing not to take any further action and often contains other terms. It is almost certain that an employer will have used a lawyer to draft the paperwork which makes it imperative for an employee to take qualified legal advice from an employment solicitor before signing. A Deed of Release often pays an employee above the statutory rate however the employer expects to be able to move on knowing that any possible potential future liability is extinguished. A Deed of Release is an important document that an employee should not sign unless all of the implications are fully understood. Employers may offer to pay the cost of taking legal advice within a limited budget or may take the view that the agreement is generous leaving the employee to pay for his own investigations with a solicitor.
Employees are frequently caused stress and anxiety by being presented with a Deed of Release and often feel that they have no alternative than to agree however our employment solicitors are able to fully dissect such documentation and in appropriate cases may renegotiate the sum offered to a higher figure if they feel that the offer is low and does not cover the potential risk of early settlement by the employee. An experienced Deed of Release solicitor will approach each situation with sensitivity and ensure that the client is fully aware of all of the implications prior to signing the deed of release. In some circumstances an employee may be advised to refuse to sign the agreement and to consider pursuing legal proceedings in a court of law for unfair dismissal, discrimination or redundancy amongst many other remedies. A Deed of Release may not just be about the amount of compensation on offer. Factors such as confidentiality, references, share schemes, business savings plans and restrictive covenants are all highly relevant when employment ends. If you need legal advice please contact us prior to making any agreement.
A Deed of Release may contain numerous clauses and will vary dependent on the particular problem that the document is seeking to remedy. Most documentation will contain clauses that cover the following:-
