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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 47361
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I have a Settlement Agreement with my previous employer which

Customer Question

I have a Settlement Agreement with my previous employer which states they will repay my loan to them at a rate of £2000 per month. The first payment was due on 31st January but was not paid due to poor company cash flow. The company anticipates being able to pay something in the first week of March but has not confirmed a figure. What legal mechanisms are available to me to force them to keep to the agreement and make regular payments?
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.
Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today. Do you think if you took them to court they will have the money to pay?
Customer: replied 1 year ago.
Not in the immediate future
Expert:  Ben Jones replied 1 year ago.
There is nothing which will guarantee that the employer sticks to the terms of the agreement and pays you on time as agreed. There is already a formal contract in place requiring them to do that so nothing further will actually guarantee that. Whatever is in place it can still be breached by them. However, it does place them in breach of contract so you can argue that the settlement agreement is void and that you do not have to adhere to any restrictions under it. Alternatively, you would be entitled to pursue them for the sum wed immediately rather than waiting for it to be paid in instalments. Saying that, you have to be realistic as to what you can get if you were to pursue them and you have indicated that it is unlikely they would be able to satisfy those payments. As such, going to court to enforce the agreement may be a pointless task as it will not guarantee immediate payment or payment on schedule and you would have spent time and money pursuing the claim. So I understand it is frustrating but you just have to leave this in the employer’s hands because only they can decide when the payments are made. If they have stopped making payments altogether then eventually you may consider pursuing them for the full outstanding amount, but if they are just failing to stick to the payment schedule then you may have to accept that unfortunately because you cannot guatantee payments will be made on time especially if it is due to cash flow problems. I'm sorry if this is not necessarily the answer you were hoping for, however I do have a duty to be honest and explain the law as it actually stands. This does mean delivering bad news from time to time. I hope you understand and would be happy to provide any further clarification if needed. If you are still satisfied with the level of service you have received I would be grateful if you could please take a second to leave a positive rating by selecting 3, 4 or 5 starts at the top of the page. Thank you
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Customer: replied 1 year ago.
Further to my previous question and your answer; should the companies financial position improve and they still not make payments to me, could I then pursue them through the 'small claims court' and if I win would they be expected to pay my costs?
Expert:  Ben Jones replied 1 year ago.
Hello, how much would you pursue them for in total?
Customer: replied 1 year ago.
For the amount not paid, i.e. £2K per month.
Expert:  Ben Jones replied 1 year ago.
Yes but would it just be £2k or a few months worth of £2k, making it more?
Customer: replied 1 year ago.
Good question, and I would need guidance on this point, but for the sake of this discussion assume either.
Expert:  Ben Jones replied 1 year ago.
well that will affect where the claim is made and what happens with costs. If the total is up to £10k then it is the small claims court and each side pays their own legal costs, whether they win or lose. If the amount is over £10k then it will usually go on the fast track claims and then the losing party can be asked to pay the wining party's costs although it is not guaranteed you will get the full amount back, there are complex rules n how costs are calculated

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