When your company is considering redundancies and you want the certainty of making sure there is not going to be a costly and lengthy Tribunal claim against your firm, you need solid and sensible legal Advice to ensure the Settlement Agreements are going to be accepted.
The effect of such agreements is that the employee gives up their right to bring, or continue with, a claim against the employer in exchange for an agreed amount of compensation. Settlement agreements are subject to strict statutory controls, but a properly executed agreement is legally binding and gives you peace of mind that your business will not face claims from your former employee.
As there are strict statutory requirements, it is important that the procedure is carried out correctly throughout as if it is defective in any way it may leave your business open to further action at a time when you thought that risk had been removed. We can assist from early on, advising you whether a settlement agreement would be appropriate and how to go about it.
Often it is the employee who initiates the process, but if you intend to make the first move and offer a settlement agreement to an employee you must be careful about the circumstances as a wrong move at this stage could leave your business open to discrimination or unfair dismissal claims.
Having considered the background to the situation we can also offer advice on the compensation to be offered, and thereafter draft an agreement that both complies with the various statutory requirements and achieves the ultimate objective of providing clear protection to your business interests.
We are happy to discuss the cost of producing such agreements with you and this will vary depending upon the complexity of both the issues being dealt with and the agreement needed to achieve your desired outcomes.
You should also be aware that you will usually be expected to make a contribution to the legal costs incurred by the employee in seeking independent advice on the draft agreement prior to signing.
Multiple Settlement Agreements
If you are experiencing a situation where you, for whatever reason, have to lay off several employees at the same time then we can assist if you wish to ask us to advise those who are being offered settlement agreements.
At what can be a difficult time, we are happy to attend your premises to see the affected employees and provide them with appropriate advice (as long as they are content with the arrangement and do not wish to choose their own solicitor).
This can be somewhat easier, and more efficient, than each employee having to find their own solicitor and arrange appointments. In most cases we would be able to see all affected employees in one day, thereby speeding the process up for all involved.