Employment law update – June 2019
employment | 28.06.2019
Are you concerned that an employee who is about to leave your business may have a possible claim against you? Would you like to seek to agree a financial sum on their termination to prevent them from bringing such a claim? Do you have an existing dispute with a current employee that needs to be solved?
Whether you are seeking to settle an existing dispute with an employee or ex-employee, considering dismissing an employee or you believe they may soon decide to leave your business, it is beneficial to consider whether they may have any claim against you, such as unfair dismissal, discrimination or unlawful deduction of wages. If you believe they may have such a claim, you might to consider agreeing an enhanced termination package with the employee and asking them to enter into a settlement agreement to renounce the claims. The employee will be required to get their own independent legal advice on the terms of the agreement.
An employee has the right to make a claim to an employment tribunal or court and this right cannot be excluded unless the employee and employer have entered into a formal settlement agreement that fulfils strict statutory requirements. Settlement agreements can be used to end an employment relationship on agreed terms or to solve a dispute in an ongoing employment relationship.
Once a valid settlement agreement has been signed by both parties, an employee will be unable to make an employment tribunal claim in relation any type of claim listed in the agreement. In the absence of a settlement agreement, an ex-employee may be able to bring a claim against your business months or even years into the future.
The fees for a settlement agreement depend on how complicated it is and how much negotiation is required for all parties agreeing to the terms. However, we will provide a full cost update throughout, so there are no surprises.
Due to the strict statutory requirements, it’s important you instruct a solicitor to ensure that the settlement agreement is legally compliant. If the agreement fails to comply with the legislation, the waiver within that agreement will be void for certain claims, meaning your ex-employee could still bring certain claims against the business.
Our team of specialist employment solicitors has extensive experience in drafting, advising on and negotiating the terms of settlement agreements. Our expertise and experience range from straightforward agreements to complex, contentious ones, meaning that we can advise any business in relation to any form of dismissal. Our in-depth knowledge means we can advise you on the most pragmatic and commercially sound way to dismiss staff, so you can focus on running your business.
employment | 28.06.2019