“We have significant experience of successfully advising employers on how to conduct ‘off the record’ settlement discussions leading to a successful settlement agreement”.
Settlement Agreement Discussions are the precursor to a settlement agreement. These discussions are intended to conclude with the employee’s departure from their employment.
It is now possible for employers to have confidential pre termination discussions with their employees to attempt to negotiate the termination of the employee’s employment off the record and in order to avoid carrying out a lengthy disciplinary/capability or redundancy procedure and/or have the risk of a tribunal claim. These type of discussions are very popular with employers where ‘problem’ employees are concerned. However, for the discussions to remain ‘inadmissible’ they must be brought and carried out in specified circumstances.
Settlement Agreement Discussions can Prevent Claims
A settlement agreement (previously called a compromise agreement) is the only way that an employer can be certain that an employee will not make a claim against them.
In order for the agreement to be enforceable, the employee must take independent legal advice and it is usual for the employer to pay for this subject to receiving a signed agreement. http://www.acas.org.uk/media/pdf/j/8/Acas-Code-of-Practice-on-Settlement-Agreements.pdf
The settlement agreement will contain certain important clauses to include the employee’s agreement to waive all claims; the employee will agree to keep the settlement agreement discussions confidential, and not to make derogatory comments about the employer, or any of their employees including on social media. In summary it’s draws a clean line for both parties.
Under a settlement agreement (compromise agreement) the employer will pay the employee some financial compensation in return for the employee entering into the settlement. Clearly, the amount of compensation will be determined by the events which brought about the settlement agreement.
We have significant experience of successfully advising employers on how to conduct ‘off the record’ settlement discussions leading to a successful settlement agreement.
For further information please contact our legal team on 01625 87 5587