Apr 5, 2019
Settlement agreements form an essential part of an employer's toolkit, providing a means to terminate employment on mutually acceptable terms without the risk of tribunal claims. Their success, however, depends on effective negotiation with the employee and compliance with technical rules.
Nick Chronias, partner at DAC Beachcroft LLP, joins us to discuss the key features of the settlement process including the following:
- starting a conversation with an employee around termination;
- the difference between "without prejudice" discussions and "protected conversations";
- the tax treatment of termination payments;
- confidentiality clauses;
- pitching the offer; and
- the technical rules that govern settlement agreements.