Drafting settlement agreements
When you’re terminating an employment contract it’s sometimes advantageous to negotiate a settlement agreement. This can limit your liabilities and prevent that employee bringing a claim against you in future.
Settlement agreements (formerly known as ‘compromise agreements’) set out the agreed terms between the parties. Once they are signed it legally prevents the employee from bringing legal action against their employer – for any reason.
Even when you think you’ve reached an agreement verbally, it’s wise to put a legally binding document in place to protect your interests.
Talk to us about getting your settlement agreements legally drafted, just click here to call your nearest Hine Solicitors.
When you could offer a settlement agreement
It’s a good way to tie up any loose ends and can be used:
- As part of a redundancy agreement
- In performance management cases when it’s necessary to draw a line under the situation
- Long term sickness where absence is affecting the business
- As a means of settling a grievance
Where a business is transferred to new owners or relocated out of the area
The devil is in the detail!
Without legal advice it’s easy to overlook critical issues and leave loopholes. Settlement agreements areregulated by legislation so it’s essential that you get legal advice when you’re drafting them. Then you can be sure that they cover all the statutory requirements.
