There are occasions when an exit is agreed with an individual and an employee leaves a business under the terms of a settlement agreement. This can sometimes be very amicable but in most cases it can be a difficult process to manage from making an offer to an employee, through to agreeing the terms. It is very important that this process is done correctly and we can advise you from having an initial conversation about how to make an offer to an employee, through to drafting a fully legally compliant agreement on your behalf.
A settlement agreement ensures that an employee waives their right to bring any further claims against their employer. As a result, the law is very strict on how a settlement agreement is written and what must be included. We will ensure that the agreement covers everything to give you a clean break and provides you with the assurances your business needs that there will not be any further employment claims from that individual.
Our settlement agreements are bespoke and are drafted to the individual circumstances of the departing employee. We can include or remind them of restrictive covenants and confidentiality obligations that restrict their activities post-termination. We can include provisions relating to the return of specific property that belongs to you. We can include confidentiality clauses relating to the settlement agreement itself to ensure that they do not tell other employees. We can also include specific wording relating to an exit announcement and future references.