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Ben Jones
Ben Jones, UK Lawyer
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I wondered if you could assist me. I was offered a

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Hello. I wondered if you could assist me. I was offered a Settlement Agreement and we both signed in April. I have now just signed my Reaffirmation Agreement. I know this means I have signed away my rights but I am concerned that my Employer might renege on my Settlement Agreement. They have not yet signed the Reaffirmation Agreement. How likely is it that they would renege? In order to so, how would they go about doing this?
was my Settlement Agreement legally binding the first time around? Thank you for your advice. Teresa
Submitted: 10 months ago.
Category: Law
Expert:  Jo C. replied 10 months ago.

Why do you think they would do this?

Customer: replied 10 months ago.
I left a couple of tasks uncompleted and didn't really make them aware of them until my last couple of days. One part of my SA was that they would pay for a training course and they agreed to that today. I'm just really concerned that they will change the payment aspect of the SA but I don't know how they would go about it.
Expert:  Ben Jones replied 10 months ago.

Hello, my name is ***** ***** my colleague has asked me to assist with your query as it is more my area of law.

Was the original agreement conditional on a reaffirmation being signed by both parties?

Customer: replied 10 months ago.
Hello Ben, just checking and yes, that looks to be the case
Customer: replied 10 months ago.
Hello Ben, I'm not sure my previous reply went through. I looked at my SA and yes, that looks to be the case
Customer: replied 10 months ago.
Apologies, the clause says "Conditional on you and your Adviser signing this Agreement and the Reaffirmation Agreement and returning it to the Employer..."
Expert:  Ben Jones replied 10 months ago.

Thank you. Under the terms of the SA it would not be legally binding until both the SA and the Reaffirmation agreement have been signed and returned to them. As far as the conditions apply, you have already done this. The SA was signed by you and the employer and the reaffirmation agreement was signed by you and returned to the employer. There is no specific condition requiring the employer to also sign this for the original SA to become legally binding As such you can argue that the conditions have now been fulfilled and as such you have a binding SA in place, as per the original terms.

As to how likely it is that they would try and renege, it is impossible to answer. Only the employer knows what their true intentions are s I cannot guess for them unfortunately. I would say though that it is more hassle for the employer to renege and then have to deal with a potential claim rather than just stick to the agreement and as such the chances of reneging are usually relatively low. If they do renege then you have remedies which you could try and apply to take the matter further.

This is your basic legal position. I have more detailed advice for you in terms of the rights you have should they go and renege as feared, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there I no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you

Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 46200
Experience: Qualified Solicitor - Please start your question with 'For Ben Jones'
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Expert:  Ben Jones replied 10 months ago.

Thank you. Reneging on a settlement agreement will effectively amount to breach of contract. You may therefore consider pursuing the employer for damages resulting from that breach, namely the settlement amount you were promised.

Whenever a dispute arises over money owed by one party to another, the debtor can be pursued through the civil courts for recovery of the debt. As legal action should always be seen as a last resort, there are certain actions that should be taken initially to try and resolve this matter informally and without having to involve the courts. It is recommended that the process follows these steps:

1. Reminder letter – if no reminders have been sent yet, one should be sent first to allow the debtor to voluntarily pay what is due.

2. Letter before action – if informal reminders have been sent but these have been ignored, the debtor must be sent a formal letter asking them to repay the debt, or at least make arrangements for its repayment, within a specified period of time. A reasonable period to demand a response by would be 10 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to recover the debt. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action.

3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to www.moneyclaim.gov.uk. Once the claim form is completed it will be sent to the debtor and they will have a limited time to defend it. If they are aware legal proceedings have commenced it could also prompt them to reconsider their position and perhaps force them to contact you to try and resolve this.

Whatever correspondence is sent, it is always advisable to keep copies and use recorded delivery so that there is proof of delivery and a paper trail. The court may need to refer to these if it gets that far.

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