What Are Employment Settlement Agreements?
Settlement agreements are legally binding contracts which can be used to end an employment relationship on agreed terms. They can also be used to resolve an ongoing workplace dispute, for example, a dispute over holiday pay. These agreements can be proposed by either an employer or an employee, although it will normally be the employer.
Avoid Employment Tribunal
Once a valid settlement agreement has been signed, the employee will be unable to make an employment tribunal claim about any type of claim which is listed on the agreement.
Drafting A Settlement Agreement
We have a lot of experience in this area, so if it is something that you are considering using in your business, we would be happy to help. Please get in touch with Cluer HR to discuss a Settlement Agreement for your specific case.
Unable To Reach An Agreement?
Where the employer and employee are unable to reach an agreement, the settlement discussions can’t usually be referred to as evidence in any subsequent unfair dismissal claim. Where the settlement discussions are held to resolve an existing dispute between the parties they cannot be used as evidence in any type of claim.