Need Advice On Settlement Agreements? Contact A Law Firm Right Away!
Not every workplace runs smoothly.
In fact employment issues arise all the time and while most are resolved via informal and formal discussions or even disciplinary action some may need to be taken further.
This can be related to an employee’s performance, an employer treating an individual or group in an unfair way or simply a dispute in the workplace such as annual leave or holiday pay.
Settlement Agreements have become fairly common in employee-employer relations and we want to first explain what they are and also why you will need an employment law firm.
What Are Settlement Agreements?
Basically a settlement agreement is a way for an employer and employee to resolve a workplace dispute in a mutual way.
Rather than dragging an issue through an employment tribunal a settlement agreement can be used to end the dispute in a way that suits both the employee and the employer. Most of these agreements come from the employer who doesn’t want to prolong the issue or create low morale in the business among other employees.
The agreement is usually drafted through negotiation and discussion and it is legally binding once signed. Indeed if an employee signs a settlement agreement then this prohibits them from taking any workplace disputes laid out in the agreement any further.
These agreements must be in writing and they are a voluntary step that can be used to avoid an employment tribunal. There is no onus on the employer or even the employee to offer one.
Advantages and Disadvantages Of Settlement Agreements
On the one hand a settlement agreement can prevent a dispute between an employee and employer being put before an employment tribunal.
It can be a way to resolve the issue quickly and to the satisfaction of both parties such as providing a reference and payment to the employee and a swift resolution for the employer.
If a settlement agreement is rejected it can lead to bad morale within the workforce as well, and a further breakdown in the relationship with the that particular employee.
Agreeing on a settlement agreement may also lead to financial issues if it stipulates that a lump sum should be paid to the employee although a settlement agreement is generally a good way to avoid even higher costs at a tribunal.
Why Do You Need An Employment Law Expert?
Any workplace conflict that leads to a settlement agreement can be stressful for both the employee and the employer.
Not using legal advice can lead to problems down the line.
By using a law firm for settlement agreements you are not only getting an impartial service but also experts that can advise and help draft up the terms of the agreement itself.
The best advice for settlement agreements is to seek a professional consultation with Borg Knight law firm that is experienced in this field. Not only will it ensure that the agreement is legally sound but it can also help to bring a workplace dispute to a fair and reasonable conclusion for both parties.