It is not uncommon for workplace disputes to arise in most workplaces. Employers may be unhappy with an employee’s performance or their behaviour. On the other hand, employees may feel dissatisfied about how their employer treats them or the work they are asking them to do. In this article, we’ll look at the use of Settlement Agreements. We’ll also discuss how they may be an effective tool in dealing with workplace disputes.
Workplace Disputes and Settlement Agreements:
What are settlement agreements?
Settlement Agreements are documents that set out the terms and conditions agreed upon by those involved (the employer and employee) when they decide to settle a potential employment tribunal claim, claims, or other court proceedings. Most commonly, they are used to help end an employment relationship in a mutually acceptable way outside a formal process. Formal processes might include performance management, the grievance or redundancy process or through disciplinary action.
What are the advantages?
These agreements can be helpful to provide a swift and dignified end to an employment relationship that is not working. They can avoid the time, cost and stress of following a formal process. Disciplinary or capability procedures or a tribunal claim all cost time and money.
Employer benefits:
The employer receives the comfort of a ‘clean break’, avoiding the costs of defending any Employment Tribunal action.
Employee benefits:
The agreement usually includes an offer of compensation and an agreed reference, allowing the employee to move on. In return, they sign and waive their right to pursue a claim.
The need for independent legal advice
For a Settlement Agreement that waives an individual’s right to bring legal proceedings to be valid, the employee must receive independent advice from a relevant adviser. An employment solicitor can advise on the terms of the agreement. Usually, the employer contributes towards the cost of this independent advice. So, in these situations, there is generally nothing for the employee to pay personally.
Settlement Agreements are legal documents. Therefore, employers may also wish to seek legal advice. This ensures that a qualified solicitor drafts the settlement agreement correctly.
How can Apex Employment Solicitors help?
For employers:
If you need advice on the strategy to implement a settlement discussion with an employee, we can help. We can also prepare the draft Settlement Agreement (including provisions to cover confidentiality, restrictive covenants and assurances regarding non-derogatory comments).
For employees:
We can assist with negotiating your Settlement Agreement on the most favourable terms. We provide the independent legal advice required for the Settlement Agreement to become legally binding.
If you have any further questions about workplace disputes and settlement agreements or need help as an employer or employee, please do contact us.
Employment Law Experts