Settlement agreements were brought in the year 2013 as a way for employers to fast-track employees out of their company without the risk of legal action from the Employee. They are largely used in cases of redundancy or where an employee is underperforming and involve offering the employee a financial payout in exchange for leaving the company and agreeing not to take legal action.
For employers, settlement agreements can make it feasible to eliminate workers who are no longer valuable, while for employees they enable a way to get a financial settlement upfront, without the need to go to an employment tribunal. This is generally faster, less expensive and less stressful for both parties.
As an employer, your priority in negotiating a settlement agreement should be:
· Getting the employee to agree to the settlement without a fight.
· Not paying more than you need to.
· That all possible types of claim they could bring are considered.
· That the employee will not take any action that harms your business interests e.g. attempting to take clients with them when they leave.
Whether you are an employer looking to use a settlement agreement to remove a member of your team, or an employee who has been offered a settlement agreement, getting the right legal advice and representation is essential. This can be done by consulting one of the settlement agreement lawyers in London.
A skilled employment law solicitor will be able to ensure your interests are protected and that all likely eventualities are considered, giving you peace of mind that the matter will be truly resolved once the settlement agreement is signed.
When trying to create a fair settlement agreement that protects your interests and that your employee will be likely to accept, it is worth bearing in mind:
· Employees do not have to pay to take a claim to an employment tribunal, meaning they may consider they have “nothing to lose” if they feel your settlement agreement offer is not generous enough.
· Employees have the right to be paid for any unused holiday entitlement.
· You do not have a legal right to deduct money if the employee has exceeded their holiday entitlement, unless this was specified in their contract.
· You do not have to state the reason for termination. If the employee is being let go for poor performance, they may be more likely to agree to the settlement if this is left out of the agreement.
· You are not obliged to keep the offer of a settlement agreement open for any length of time.
In today’s digital world, finding one of the best settlement agreement lawyers in London is not too difficult. This is because most of the lawyers have a full-fledged presence on web which means you can easily browse through their profile and take a smart decision.
A good settlement lawyer would carefully listen to your needs and give the most fruitful suggestion that would bring more value to your case from all sides. He or she can help you degrade the complexity of law by presenting genuine facts to both the parties.
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