Settlement and separation agreements

All Topics

• Why you might consider making a settlement agreement
  You might consider making a settlement agreement if you think it can prevent or resolve a dispute that might lead to legal liability.
  Mar 01, 2017

• Why might you use a separation agreement?
  Dismissing an employee can lead to legal claims, such as unfair dismissal or adverse action claims.
  Mar 01, 2017

• What claims does a separation agreement protect against?
  A separation agreement will typically cover all types of claims that can be made relating to the employee’s employment, e.g. unfair dismissal or breach of contract.
  Mar 01, 2017

• Why might an employee accept a separation agreement?
  An employee might accept a separation agreement due to the ex gratia benefit attached to it.
  Mar 01, 2017

• How to negotiate a separation agreement with an employee
  When you begin negotiating a separation agreement with an employee, make it clear that any settlement you propose is being made ‘without prejudice’.
  Mar 01, 2017

• Checklist: What to include in a separation agreement
  A typical separation agreement includes the following.
  Mar 01, 2017

• Payments made under a separation agreement
  Redundancy payments and resignation payouts are taxed differently, so the total amount an employee receives under a separation agreement may vary depending on how the agreement is drafted.
  Mar 01, 2017

• Should you provide references for the employee in the separation agreement?
  Think carefully before you agree to provide the employee a reference within a separation agreement.
  Mar 01, 2017

• Recording the terms of a separation agreement
  Once you have determined the terms of the separation agreement, it needs to be recorded.
  Mar 01, 2017

• Is the separation agreement legally binding?
  Whether a separation agreement is legally binding depends on what a reasonable person would conclude was your and the employee’s intention.
  Mar 01, 2017

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