Settlement agreements

Despite the best intentions, there may come a time when an employee’s contribution declines to the point where their continued employment becomes a significant challenge for the business. In such cases, a ‘without prejudice’ or protected conversation, along with a legal document known as a Settlement Agreement, can provide a dignified way to end employment without the risk of an Employment Tribunal claim.

A Settlement Agreement is a legally binding contract that sets out the terms and conditions agreed upon by both the employer and the employee to terminate the employment relationship. This agreement typically includes:

  • Termination date: The agreed-upon date when the employment will end.
  • Financial settlement: Details of any severance pay, outstanding salary, bonuses, or other financial compensation.
  • Confidentiality clauses: Provisions to ensure that the terms of the agreement and the circumstances surrounding the termination remain confidential.
  • Non-disparagement clauses: Agreements that neither party will make negative statements about the other.
  • Waiver of claims: The employee agrees not to pursue any legal claims against the employer in exchange for the agreed-upon settlement.

Benefits of a Settlement Agreement:

  • Dignified exit: Allows the employee to leave the organisation with dignity and financial security.
  • Legal protection: Reduces the risk of costly and time-consuming Employment Tribunal claims.
  • Clarity and certainty: Provides a clear and mutually agreed-upon resolution, avoiding prolonged disputes.

How We Can Help:

Our team can assist you in navigating the complexities of ‘without prejudice’ conversations and drafting comprehensive Settlement Agreements. We ensure that all legal requirements are met and that the process is handled with sensitivity and professionalism.

Settlement agreement overview

  • Review the case to assess the risk of a discrimination claim
  • Identify the dispute and conduct the “without prejudice” meeting or protected conversation
  • Draft the settlement agreement including calculations
  • Negotiate a settlement with the employee’s legal representative

How will you benefit

  • A quick resolution by an independent HR Consultant to an on-going, potentially emotionally draining situation
  • We deal directly with the employee; there is no requirement for management to be involved in the meeting
  • The employee leaves the business immediately to consider the settlement and all correspondence is dealt with by us

Could a settlement agreement be the most appropriate solution?

Our team can advise you on the best options for your situation

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