Do you have a troublesome Employee who is threatening to resign? What should you as an Employer do to protect your position?

In many cases you should think “Settlement Agreement”.

A Settlement Agreement is a legally binding contract between an employer and an employee which settles claims an Employee may have against their Employer.

Any discussions made regarding a Settlement Agreement should be ‘without prejudice’ subject to contract and subject to section 111A Employment Rights Act 1996. This means that they are inadmissible as evidence in a Court or Tribunal and cannot be made the subject of a Disclosure Order in any Court or Tribunal proceedings.

An Employer can discuss a Settlement Agreement safe in the knowledge that the Employee would be unable to use this against them. There are however some exceptions to this rule, such as any occasion when something is said or done which in an Employment Tribunal’s opinion is ‘improper’. This would include conduct which could be regarded as harassment or bullying. Employers therefore should exercise caution when engaging in discussions/negotiations.

If you would like to discuss a Settlement Agreement contact Melissa Hamilton now on 01606 74301.