Are you offering your employee a Settlement Agreement?
Would you like to speak to an expert Employment Law Solicitor today?
It is essential to ensure that you draft a Settlement Agreement (formerly a Compromise Agreement) carefully and tailor it to the circumstances relating to the employee’s exit.
There are a lot of issues to consider in the preparation of a settlement agreement, not least, the need to ensure that it meets the statutory requirements set out in the various pieces of employment legislation to ensure that the agreement is legally binding.
How you treat payments for notice, holiday and compensation are critical, especially in relation to the treatment of tax and you should consider whether it is appropriate to include a tax indemnity clause. You should ensure that the agreement facilitates a ‘clean break’ and that any ongoing employment tribunal proceedings are withdrawn or that the Company is adequately protected from any future litigation. You need to provide for the safe return of all company property and consider how you will safeguard the Company’s confidential information and ensure that the existence and content of the agreement itself is kept confidential. You need to think about the enforceability of post termination restrictions and how to word an appropriate reference or public announcement.
There may be occasions where you are offering settlement agreements to a number of employees, for example, following a redundancy program. Askews Legal LLP has one of the largest employment departments in the Midlands and our team of 5 can attend at your premises and conduct a group consultation followed by individual meetings with each employee to advise on the terms and effect of the agreement. We can make it more economical for you by offering a reduced fee for bulk instructions, minimise duplication, and reduce the administrative burden as you will only need to deal with a single firm of solicitors.
Call to speak to one of our specialist Coventry and Warwickshire based Employment Law Solicitors on 024 7623 1000 and we could be advising you about Settlement Agreements today.