It is very important to have a basic understanding of admissibility rules when raising the issue of possible settlement with an employee. A failure to do this will mean a high risk of prejudice to any legal claim that may follow.
Without Prejudice – this rule only covers situations where there is an existing legal dispute
Section 111A Employment Rights Act 1996 – this provides a limited amount of protection but only engages if a monetary offer is actually conveyed and conduct is reasonable (i.e. no undue influence is brought to bear)
It is most advisable to appoint a suitably skilled advisor to conduct settlement negotiations.
It will be essential to agree ‘heads of terms’ first, these usually include:
- termination date
- compensation amount (excluding notice pay)
- approach to accrued annual leave
- statements about reason for leaving
When these essentials are in place, you will need a suitably drafted settlement agreement.
The form below should be completed if you would like me to assist further: