Drafting settlement agreements for employers

Defending a claim at an employment tribunal can be both time-consuming and expensive. A settlement agreement provides a more efficient and cost-effective solution by resolving disputes early, keeping them out of the courtroom.

Protect your business’s reputation with clear confidentiality terms. A settlement agreement ensures that sensitive company information stays private, preventing any potential damage to your brand in the future.

By having a legally binding settlement agreement in place, you prevent any future claims or legal challenges from the employee regarding their employment or dismissal.

Secure your business interests by including restrictive covenants within the settlement agreement. These clauses can prevent employees from working with competitors or soliciting your clients after their departure, giving you peace of mind and protecting your competitive advantage.

Our service begins with a detailed consultation. During this call or meeting, we gather all the necessary information about your situation. Whether you’re dealing with a redundancy, a workplace dispute, or a sensitive employee exit, we’ll take the time to understand the complexities involved.

What we’ll cover during the consultation:

• The reasons for offering the settlement agreement (e.g. redundancy, misconduct, performance)
• Any specific concerns you have, such as potential employment tribunal claims
• Your business’s confidentiality needs, restrictive covenants, or other protections required
• The employee’s current contractual terms, including notice periods, benefits, and bonuses

From this discussion, we provide bespoke legal advice, ensuring that the settlement agreement is tailored to your specific situation and that all critical risks are addressed from the outset.

Once we’ve gathered the necessary information and understood your priorities, we get to work on drafting the settlement agreement. The document we produce will be robust, legally compliant, and designed to protect your business from future claims.

Our settlement agreements typically cover:

• Confidentiality clauses: Ensuring that sensitive business information remains confidential, both during and after the employee’s departure.
• Restrictive covenants: We include specific clauses that prevent the departing employee from competing with your business, working with competitors, or soliciting your clients for a set period.
• Waiver of claims: We ensure that the employee waives any rights to bring future claims against your company, particularly relating to dismissal or workplace issues.
• Notice periods & payments: Clear terms on notice periods, final payments, and any bonuses or benefits that may be due.
• References: If required, we can include a reference clause to provide clarity on what you will say in future reference requests.

Our employment law solicitors work meticulously to ensure that the agreement is legally enforceable and covers every potential risk, leaving no room for ambiguity.

In some cases, the employee or their solicitor may request amendments or raise concerns about the settlement agreement. Our experienced employment solicitors are well-versed in handling negotiations and can step in to reach a mutually beneficial agreement. We act swiftly and professionally to resolve any issues, ensuring that the settlement process runs smoothly and without unnecessary delays.

Our role in negotiations includes:

• Advising on Employee Requests: If the employee requests additional compensation or changes to the terms, we provide advice on what’s reasonable and help you negotiate these points effectively.
• Protecting Your Business Interests: We ensure that any amendments or negotiations do not compromise your business’s legal or financial position.
• Keeping Communication Clear and Professional: Whether negotiating directly with the employee or their solicitor, we maintain clear and effective communication to reach an agreement that works for both parties.

We provide the required independent legal advice to your employee, ensuring they fully understand the terms of the settlement agreement, including financial terms, waiver of claims, confidentiality, and restrictive covenants. This step ensures the agreement is legally binding.

Since we’re familiar with the structure of the agreements we draft for your business, we can advise your employee quickly and efficiently. This reduces the time spent addressing any concerns and avoids misinterpretations, keeping the process on track.

Recommending our employment law experts to your employee prevents delays caused by them having to find their own legal representation. We’re ready to advise immediately, providing a fast, seamless service that minimises hold-ups.

Handling both the employer’s and employee’s legal needs streamlines the process. With fewer misunderstandings or delays, we can achieve a quicker, mutually beneficial resolution, allowing both parties to move on efficiently.