Are Settlement Agreements a commercially sensible approach?
Inevitably employment ends. Usually it is a new job or retirement and this can be a jolly affair with a good luck card and a leaving do. Unfortunately sometimes the employment relationship breaks down. It might be issues of conduct, capability (performance / ill-health), redundancy, a clash of personalities, discrimination, a grievance or similar. This may result in dismissal or the employee resigning and bringing a claim for constructive dismissal (amongst other things).
Where a dispute is not resolved your employee is free to go to the Employment Tribunal. Whether you win or lose, an Employment Tribunal claim costs your business time and money which is better spent elsewhere.
Not always but sometimes a Settlement Agreement can be a commercially sensible option to nip a dispute in the bud. Under a Settlement Agreement (previously called Compromise Agreements), employment usually ends with the employee accepting a modest package in return for settling/waiving their claims.
At Jordans we know that practical commercial advice can quickly resolve a dispute which might otherwise run for months and months. We have the expertise to bring your employee to the table. From preparing the Settlement Agreement to acting in negotiations, let the experts help you secure a confidential settlement.
For more information or to speak to one of our Employment team about Settlement Agreements, please call Jordans on 01924 387 110.