Sometimes employers encounter a difficult employee or situation or simply want to move faster to resolve an issue than the law will safely allow. In such circumstances using a settlement agreement can be an effective commercial option. Kingfisher has a cost-effective Settlement Agreement Service specifically tailored to meet the needs of employers.
What is a Settlement Agreement?
A settlement agreement is a legally binding contract that prevents an employee from making a claim that is covered by the agreement to an employment tribunal or court. The employee usually enters into the agreement in exchange for a payment from the employer.
Settlement agreements are most frequently used to end the employment relationship on agreed terms, although they can be used to resolve an individual matter without terminating the employment.
Some of the more common situations where employers may want to use a settlement agreement include:
- Disciplinary cases where the employer is unlikely to be able to secure a safe dismissal;
- Redundancy, particularly if the employer is offering enhanced redundancy pay;
- Performance management or ill health cases where the employer does not wish to undertake what could be a lengthy process;
- Situations where there is a risk of a successful claim being brought against the employer such as where discrimination or harassment have occurred.
Settlement agreements are voluntary and to be legally binding they must meet certain legal requirements, one of which is that the employee must receive independent legal advice. As an employer, it is therefore vital you have an expert on your side.
Kingfisher Settlement Agreement Service
Kingfisher has a proven track-record of providing prompt, expert, client focused employment law advice. By choosing to use our Settlement Agreement Service you will have the support and protection your organisation deserves.
A dedicated employment law expert will:
- Advise you on the facts of your case, including settlement agreement discussions;
- Draft a bespoke settlement agreement to meet your needs;
- Negotiate with the employee’s representative on your behalf in accordance with your instructions.