Settlement agreements

Speak to one of our solicitors if you want to have a protected conversation with a member of staff or want to undertake redundancies with enhanced terms. We can help you prepare and negotiate settlement agreements with the affected staff.

What is a protected conversation?

A protected conversation is where either an employer or employee can initiate discussions to bring the employment to an end on agreed terms without having to rely on the “without prejudice” rule which only applies when the parties are already in dispute.

Conversations are “protected” and hence inadmissible in tribunal proceedings unless there has been “improper behaviour” which would include discrimination.

Protected conversations leading to employment terminating under the terms of a settlement agreement are normally initiated by the employer to avoid having to put the employee through a capability or disciplinary procedure or a  redundancy process.  They are a way of circumnavigating processes which can be time-consuming and stressful for both parties.

Notably, it is equally open to the employee to approach the employer to initiate a pre-termination negotiation. It is unusual for an employee to approach an employer with a draft settlement agreement because the employee normally expects the employer to bear the cost of preparing the agreement if terms can be agreed. It is more common for an employee wishing to initiate pre-termination negotiations to approach their employer with the suggestion of discussing a negotiated departure, and allow the employer to make an initial offer.

In either scenario, we can help you navigate the process and ensure the best possible outcome at the lowest possible cost and risk.