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Settlement Agreements

As an employer, drafting a settlement agreement is essential to protect your business from potential legal claims arising from an employee’s termination. Our specialist employment solicitors will provide expert guidance, ensuring your business remains protected.

 

What is a settlement agreement, and when should I use one?

A settlement agreement is a legally binding document that formalises an employee’s departure from a business. By signing the agreement, the employee waives their right to bring a claim against you in an employment tribunal.

Settlement agreements can be useful when:

  • A disciplinary process is ongoing, but both parties prefer to reach a mutual agreement.
  • The employer-employee relationship has broken down.
  • You want to offer an enhanced exit package in exchange for legal protection.

Our team can draft the agreement, advise on negotiation strategies, and ensure compliance with employment law.

 

What is in a settlement agreement?

A settlement agreement typically includes:

  • Severance payment – the employee receives a payment in exchange for waiving their right to pursue legal action.
  • Confidentiality – the employee agrees to keep the terms of the agreement confidentiality.
  • Employment termination – the employee’s contract is terminated on agreed terms.
  • Reference – the employee receives an agree reference.

 

What is a protected conversation, and how does it work?

A protected conversation allows you to discuss termination of employment confidentially without the risk of the employee using it as evidence in a tribunal. However, strict rules apply, and if not handled correctly, the conversation could be disclosed as part of an unfair dismissal claim.

We will guide you on conducting a protected conversation properly, ensuring you stay within the legal framework.

 

How we can support you

The law relating to both settlement agreements and protected conversations can be quite complex, but our experienced team of solicitors will guide you through the process in a clear and understandable way. We can:

  • Draft settlement agreements.
  • Guide you through protected conversations.
  • Support you in minimising legal risks and avoiding costly tribunal claims.

If you need expert advice on settlement agreements , call our employment solicitors today for a confidential consultation.

Our expert team can advise you on any of the following issues:

Call our experts today to discuss your employment issues

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