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There are some occasions where it is prudent to use a settlement agreement when an employee is exiting an organisation. Companies should be prepared for these occasions.
A settlement agreement often needs critical legal advice in order to work out an arrangement that both the company and the employee are happy to agree to.
When would you need a settlement agreement?
- Where a working relationship has broken down, a settlement agreement can prove a positive solution for both parties
- Where an individual’s performance has deteriorated, a settlement agreement can avoid a painful and drawn out performance management process
- Where a restructuring or a redundancy situation arises, an enhanced package and a settlement agreement can enable both parties to move on.
Why would you need a settlement agreement?
- It imposes a bar on future employment claims and employment tribunals proceedings, providing certainty against litigation
- Carefully drafted, it provides the opportunity to redefine the post-employment relationship (e.g. restricting, extending or removing post termination restrictions including social media use)
- If things go wrong after termination you will have a clear reference point to resolve any dispute.
It is important that the settlement agreement is carefully thought out and worked through to eliminate any future damage to the organisation.
Be aware that legislation is constantly changing
It is important to note that as legislation is constantly changing, settlement agreements need regular amending and legal updating to ensure they are compliant and enforceable.
Rely on us for a watertight settlement agreement
Our legal specialists are skillful and experienced negotiators. They can work with you to agree a suitable settlement, draft the settlement agreement and negotiate on your behalf with the employee’s representative.
We tailor our services to your specific requirements and charge a fixed fee.