Settlement Agreements (For Employers)
The Employment Tribunal accepts around 100,000 claims from employees in a typical year. If you’re faced with a potential dispute with an existing employee or an employee leaving your business, whether it’s of their choosing or yours, you’ll want to make sure you minimise the risk of a claim arising.
In many cases, employers choose to offer a payment or some other benefit to the employee in return for an effective waiver of such claims and other protections for the business.
A Settlement Agreement (previously called a Compromise Agreement) is a legally binding document which satisfies the statutory requirements for an employer and employee to settle a wide range of disputes amicably. Such agreements are an effective tool to avoid costly tribunal proceedings and provide certainty for your business.
They can also be used where there is no dispute, but the employer wishes to manage the terms upon which an exiting employee will leave the business. For example, you may wish to protect the business by re-affirming post-termination restrictions or confidentiality clauses, or to ensure that the employee does not make damaging comments to third parties about your business.
Our specialists can discuss your options with you, including an appropriate offer, and draft the relevant documentation to meet the statutory requirements. We can also liaise with your employee if you wish throughout the process or we can provide you with draft letters so you can manage the process yourself. We offer fixed fees for this work, so you can effectively manage your budget.
For further information and answers to FAQs about Settlement Agreements, please read our full article here.
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Sunny is a Paralegal in our Employment Law team.
Outside of work she enjoys doing hot yoga and trying new restaurants with friends and family!