Settlement Agreements for Businesses

Employers and employees can start conversations with each other about ending the employment relationship without risking this being referred to in a tribunal in a claim for unfair dismissal. These rules do not apply to discrimination or automatic unfair dismissal claims.

If agreement is reached then this is formalised in a settlement agreement, formerly called a compromise agreement.

We can guide an employer through this, including complying with the ACAS Code of Practice on Settlement Agreements and drafting the agreement itself. The aim is to bring the employment relationship to an end with dignity and to give an employee some concessions that a tribunal could never award such as an agreed reference, outplacement support, an internal announcement and goodwill.