Unfortunately sometimes things go wrong in the working relationship and it is necessary to part company with one of your employees. Settlement Agreements (formerly Compromise Agreements) can often be a neater and tidier way of resolving the issues than going through a disciplinary procedure or grievance process.
They can also be effective when the employment relationship has come to an end and the former employee is threatening to sue the business.
Settlement Agreements are legally binding agreements under which the employee receives an enhanced financial package in return for waiving their right to sue their employer. The employee must seek independent legal advice but as long as the employee and the adviser sign, then the agreement can help shortcut potentially antagonistic and time consuming disputes.
How can we help you?
If you are considering offering a Settlement Agreement please do contact our Employment Law Team who regularly advise on the drafting and negotiating of Settlement Agreements on behalf of businesses.