What is a Settlement Agreement?
A Settlement Agreement is a contract used to end a relationship between an employer and an employee. These Agreements are used when issues at work are not resolved effectively, if there is a request of compensation, for redundancy, if you need to restructure your business or for other reasons. The benefit of a Settlement Agreement is the peace of mind that you have agreed with your employee not to bring any future employment claims.
You make the offer and we can complete the process
We can help you from the beginning of the process or wrap the agreement into formal legal document that is binding on all parties giving both you and your employee peace of mind. You will make an offer and have a discussion with your employee and then you will need to ask them to seek independent legal advice on the agreement that we can draft for you. A Settlement Agreement is not binding under current employment legislation until the employee takes advice on it from an independent adviser.
Who pays for the Settlement Agreement - the employer or the employee?
In most if not all cases you as the employer will offer to pay towards your employee getting independent legal advice. That means you can keep control of the process and encourage your employee to take advice. If the agreement is straightforward, that cost need not be a huge sum.
How long does it take?
If you have already reached terms with your employee we can usually turn an agreement round in 48 hours