Employment soilicitors

Pauline123_2

what ID and other checks do employment solicitors do for a settlemet agreement

ElefantEd

They unearth everything about you and if they have grounds, make your name mud.

Pauline123_2

I have been told I am to be made redundant and will need to sign a settlement agreement, and have also been told I will need an employment solicitor to sign this agreement. I have spoken to a friend and they said I will need photo ID, a current passport. I don't have a passport - help. Also do solicitors need bank details and do they do any financial or other checks?
My employer has said they will pay for the agreement to be signed by the solicitor.

Undervalued

Solicitors are legally obliged to verify the identity of a new client. They will tell you exactly what is required and what alternatives are acceptable. A significant number of people don't have passports so it won't be the first time this has occurred.

There is no obvious reason for bank or other financial details for this purpose.

Remember, the solicitor will be acting for YOU and not for the employer despite the fact that the employer is paying.

Do be clear how much the employer is willing to pay in solicitor fees. Normally it is the absolute minimum and they won't want to pay for the solicitor to argue with them on your behalf!

Presumably the employer is offering you more than the minimum statutory redundancy? If not there is no benefit to you in signing a settlement agreement at all.

Pauline123_2

Thanks Undervalued

Yes the employer is offering more than the minimum statutory redundancy.

The reason that I asked about bank details and other checks is that my bank account is still at my parents address - would this make a difference? will it cause any problems? is it something that would be reported to a government agency for example HMRC?
In fact are redundancy payments reported to HMRC?

Undervalued

Redundancy / settlement payments up to, if I remember correctly, £30K are tax free. Any payment in lieu of notice (a minimum of one week for each year you have been employed up to twelve) would normally be taxable just as if you had been working.

I can see no reason why the bank account address would be relevant, usually it would just be paid through payroll like your salary.

As I say you will have to ask the solicitor exactly what they require to prove id as I am quite a few years out of date!

Pauline123_2

Thanks again Undervalued

The agreement states that my termination date will be 6th April 2016.

I have been told and seen on a couple of sites that the government is looking into reducing the tax free amount for redundancy from 30K to possibly 6K - does anyone know anything about this?

Undervalued

I wasn't aware of that but I would imagine it is unlikely to change before the next budget, if at all. But who knows!

Presumably there is an element of so called "voluntary redundancy" in this? Technically, although the phrase is often used, there is no such thing. What it actually amounts to is a mutually agreed separation.

If the firm had solid grounds to make you redundant then they could do so just by paying the legal minimum. By offering more and asking for a settlement agreement they are, in effect, paying you to go quietly and protecting themselves against virtually all possible claims.

How much that is worth depends on the circumstances and the strength, or otherwise, of your negotiating position. As I said earlier, the minimal solicitor's fee they will offer will not pay for the lawyer to negotiate on your behalf. It may be worth considering paying some more yourself. Very few first offers are the maximum they are prepared to pay!

MEM62

Pauline123 wrote: »

I have been told I am to be made redundant and will need to sign a settlement agreement, and have also been told I will need an employment solicitor to sign this agreement. I have spoken to a friend and they said I will need photo ID, a current passport. I don't have a passport - help. Also do solicitors need bank details and do they do any financial or other checks?
My employer has said they will pay for the agreement to be signed by the solicitor.

I think you may be getting the wrong end of the stick. Redundancy does not need to be signed off by your solicitor. I believe you are being asked to leave under a 'Settlement Agreement'. Under this arrangement you negotiate compensation to leave the company voluntarily and the company must pay for you to take legal advice to ensure that the settlement is reasonable.

Undervalued

MEM62 wrote: »

I think you may be getting the wrong end of the stick. Redundancy does not need to be signed off by your solicitor. I believe you are being asked to leave under a 'Settlement Agreement'. Under this arrangement you negotiate compensation to leave the company voluntarily and the company must pay for you to take legal advice to ensure that the settlement is reasonable.

Indeed but, as the OP has said, she is being offered more than the statutory minimum. If the firm are doing that then they are quite entitled to make it conditional on a settlement agreement to protect themselves against any possible claim.

Further, whilst with a settlement agreement it is customary for the firm to pay towards the employee's legal advice, it is not actually obligatory that they do. For the agreement to be valid the employee must be advised by either a solicitor or a specially trained trades union representative and the advisor must have insurance to indemnify them against any claim for bad advice. However, who pays for that advice is not stipulated.

athensgeorgia

Pauline123 wrote: »

what ID and other checks do employment solicitors do for a settlemet agreement

As a new client you would be asked for photographic ID and proof of address. If you don't have a passport a driving licence is fine as long as it has your photo on it. Proof of address is any of the usual utility bills.

It will usually say in the settlement agreement up to how much your company will pay for your legal fees.

You will obviously need to take with you a copy of the agreement to your appointment and a copy of your employment contract comes in handy if you have it to hand. The practice I work at asks for the agreement electronically so we can have your file open and the docs ready for signature when you attend.

No financial checks are carried out.