Why consider employee settlement?

As an employer, you may want to propose a termination of employment, based on agreed terms before there is any actual dispute with the employee.  

Instead of going through capability, disciplinary or redundancy proceedings with the risk of litigation and possible negative publicity, it is often seen by the employer as beneficial to start confidential exit negotiations with a view to a financial settlement.

What is a settlement?

A settlement agreement is a legal document that deals with the termination of employment on agreed terms. 

When negotiating this type of agreement, it is common to specify that all discussions should be treated as “without prejudice” and “subject to contract”.  This means that all parties can speak freely in negotiations and anything said cannot be used against them in evidence should negotiations break down, leading to a formal claim being brought in an employment tribunal. 

It also means that neither party is legally bound by anything discussed or apparently agreed in negotiations until a final written agreement is actually signed.

How LawBite can help

LawBite has expert employment lawyers and negotiators who can assist you in this process of an employee settlement. This can include:

  • Defining an effective process and timeline
  • Drafting the necessary documentation
  • Proving an independent mediator

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