This morning, the Gregg Latcham’s Bristol Employment team hosted another successful Employment Breakfast focusing on Settlement Agreements: Getting it Right.
The team began by outlining what Settlement Agreements are and when to use them – to settle a dispute, agree a mutual termination or alongside corporate transactions. The team then went on to consider and give tactical advice on the strategies to consider when drafting and negotiating the terms in practice.
The session included a review of the key terms of a Settlement Agreement, and the options available for both parties to reach a commercial agreement on suitable terms – including both financial and non-financial elements.
The team unraveled the technical issues behind the strengths and weaknesses in “without prejudice” and “protected conversations”. They then ran through a practical example in a performance management process to identify the strengths and weaknesses involved in the timing of making an offer.
Attendees were reminded of the critical importance of properly preparing in advance before making an offer. Taking a little time to consider the position and planning ahead before making an offer is integral in ensuring a fluid process. This not only increases the chances of success, but also saves the business critical time and money.
Our Bristol Employment solicitors ran through how businesses should calculate a compensation payment and why, and also how to ensure the payments are correctly taxed – all the more important with increasing HMRC review.
Stepping back from the terms of the agreement, they advised on the practical options to consider if an agreement is not reached and how to then continue managing the individual. The team identified common issues to consider if an agreement is subsequently suspected to have been breached and the effect on the agreement as a whole. .
Finally, the team outlined the current Government consultation to change confidentiality clauses in light of the concerns raised by #metoo and the future changes likely to be made.
Those attending thoroughly enjoyed the session and feedback confirmed that it was “excellent and enjoyable”, “useful” and “I love that these sessions cover such a lot in such a concise way”. Many thanks to all those who attended and shared their own insight and experiences.
If you have questions or require advice on the issues raised in this article, or any other employment law matter, don’t hesitate to contact our Nick Jones or Cecily Donoghue, our Employment Solicitors in Bristol.