Settlement agreements can be a useful way to settle all sorts of employment claims. Providing he or she is independently advised, these agreements remove any possibility of a claim by an employee who has been paid off.
These agreements must be drafted in a very specific way in order to ensure that they are binding on the employee. The employee has to receive independent advice before signing and generally the employer will pay a reasonable contribution towards the cost of that advice.
Commencing settlement discussions can be a sensitive matter and if you as an employer initiate them, it is important to do so in such a way that ensures if talks break down, they cannot be used against you. In appropriate cases, employers can benefit from ‘without prejudice’ status or from having a ‘protected conversation’ – although each has its limitations.
We Advise On:
- when to offer a settlement agreement
- ‘without prejudice’ and ‘protected conversation’ status
- appropriate terms to propose
- drafting settlement agreements and negotiating terms
- compromising tribunal proceedings
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