For one reason or the other, employers find themselves in situations in which they have to part ways with an employee. This can be solved through an Employment Tribunal or via settlement agreement overseen by a licensed solicitor. A settlement agreement is a legally binding contract between an employer and employee made during or immediately after the termination of an employment contract.
The settlement agreement documents spell out the conditions of the termination, the benefits and compensation called the ex-gratia payment or compensation package, and if agreed on, prohibits the employee from making further claims against the employers at the tribunal. The agreement only becomes binding and valid after the employee receives sound legal advice from a licensed and qualified settlement agreement solicitor.
The solicitor will then attach his certificate as proof the independent legal advice was indeed provided to the employee. A solicitor can also help the employee negotiate with the employers on the details of the negotiation package if they are not satisfied with what is offered. The major benefit for both the employee and the employer is that settlement agreement ends in an easy and amicable resolution to the termination of an employment contract without the need to follow the path of potentially costly Employment Tribunal litigation.
Whether you are an employer or an employee, it is in everyone’s best interests to ensure that both parties’ rights are protected. A failure to set out a settlement agreement could compromise your business or career. All settlement agreements should be approved by a solicitor will only sign once they are satisfied the employee finds the terms offered by the employer acceptable. The other benefit of choosing settlement agreement solicitors is that they should be able to craft into the settlement agreement that neither parties (both the employer and the employee) can talk or write bad things about the other.
This avoids negative publicity on the employer’s end which results in loss of clients and the resultant expensive PR campaign to repair the damage done to the employer’s image. The employee, on the other hand, is also protected from future unflattering references that may lock him out of future job opportunities and jeopardize his career. Employment Tribunal outcomes are unpredictable and may sometime take much of both party’s time as opposed to a settlement agreement validated by a qualified solicitor.
This is unnecessary if both parties can agree on an amicable out of court solution. The employee is able to leave the employer on good terms when they choose settlement agreement solicitors as opposed to protracted litigation that leaves a bad taste in the mouths of both parties. Neither of the parties has to reveal the reasons surrounding the termination of employment. The parties involved part ways with their reputations intact.
When either party chooses the path of a settlement agreement, they avoid the associated high costs of taking a claim and defending a claim at the tribunal. The agreement settlement solicitor helps both the employer and the employee avoid the charges of litigation at the tribunal and achieves a mutually agreeable result without the need for issuing proceedings.
Both the employer and the employee privacy are protected in the agreement especially matters associated with the, oftensensitive, circumstances surrounding the termination of the employment contract and the amount of compensation the employee received. A settlement agreement solicitor protects both parties from breaking that confidentiality clause.