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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50157
Experience:  Qualified Solicitor
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I got made redundant on at the end of july.the company said

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I got made redundant on at the end of july.the company said they was going insolvent and paid me £3500 to sign a settlement a letter from company said I could retrieve the rest of the money owed to me from the insolvency agency.but the company has not gone insolvent,so do I have any rights or have I lost my rights by signing the settlement agreement
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today. Do you know if they actually lied about going insolvent or did their circumstances just change?
Customer: replied 2 years ago.
no I don't know, in the letter from them it said their intention was to become insolvent
Customer: replied 2 years ago.
Hi Ben attached is a copy of the letter and first few pages of settlement agreement from Adrian
Thanks will review these and get back to you
Generally when a settlement agreement is signed, it serves to end the rights of both parties to claim against each other and it effectively amounts to a clean break. You agree to leave the company and not to claim against them in the future, and it agrees to pay you and do whatever has been agreed under the settlement agreement. A claim would only really be possible if either of the parties has breached its terms under the agreement, for example if the employer has failed to pay you what you were due under the agreement.
However, if you can show that the employer knew that they were not going to go down the insolvency route and used that as an excuse to try and make their position worse than it is, in turn prompting you to accept the settlement agreement, then you could pursue them for misrepresentation. In effect they would have misrepresented their position and misled you into thinking that by agreeing to the settlement you would be in a better position than if you had not. However, you would need to show that they knew at the time that their intentions were not to become insolvent. It would not be possible to claim if they genuinely considered going down the insolvency route but then their financial position changed for the better or some sort of rescue package was agreed which managed to save them from insolvency. Therefore, you would need some evidence that this was the case to be able to take this any further.
I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
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