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Settlement Agreements

Protected conversations and settlement agreements can be a sensible way to resolve a breakdown in the relationship between an employee and employer.

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However, it is critical that they are properly planned and drafted and offered at the right time. It is often sensible for an employer to follow some sort of procedure before commencing discussions around settlement agreements to ensure that there is a fall-back position should negotiations break down.

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Protected conversations and settlement agreements can be a sensible way to resolve a breakdown in the relationship between an employee and employer.  However, it is critical that they are properly planned and drafted and offered at the right time.  It is often sensible for an employer to follow some sort of procedure before commencing discussions around settlement agreements to ensure that there is a fall-back position should negotiations break down.  For employees it is important to understand employment rights and the maximum likely compensation in the event that litigation is pursued rather settlement.  Good legal advice is critical for both employer and employee to ensure that objectives are met and the desired outcome achieved.  Settlement agreements are frequently used to settle claims which have been initiated in the Employment Tribunal, rather than relying on the ACAS service and settlement via a COT3 agreement – settlement agreements enable wider provisions to be included and as such can address other concerns a party may have aside from the issues within the particular claim.

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