Settlement Agreements for Employers

Home / IBB Commercial / Settlement Discussions and Agreements

Settlement Agreements for Employers

One of the most difficult tasks an HR team has to face is managing an employee exit through settlement discussions.

Very often situations are faced where an employee is not performing to expectations or their attitude and behaviour does not fit with the culture of the business.  Whilst there are formal processes that may be invoked, very often it is in both parties’ interests to discuss an exit package before going down the formal route.  Obviously these discussions need to be handled extremely carefully.

The offer put forward by the employer (both financial and non-financial) will be critical as to the success or otherwise of any negotiations and IBB will help you find the appropriate offer in each case.

IBB will specifically assist in the following areas:

  • advising on the risks of commencing settlement discussions in any given scenario, taking into account the background to the matter and the likely response from the employee;
  • drafting a chronology of meetings and letters, co-ordinating oral and written offers, consideration of feedback and negotiations with advisors;
  • guidance on how to avoid action that might be considered “improper behaviour” that would lose the confidentiality of the conversations;
  • guidance on how best to approach the discussions in tone and content; what to say, how to say it and when to say it;
  • preparing briefing notes and arranging pre-meeting conferences if necessary;
  • guidance on the appropriate level of financial settlement to offer in any given case
  • drafting correspondence and the settlement agreement;
  • advising on or conducting negotiations with the employee and/or their legal advisors;

Handled correctly, settlement discussions and negotiations can effectively manage very difficult employment relation issues in a quick and efficient manner reducing risk, management time and cost.  IBB’s advice and guidance will be clear and concise in order to ensure that the business maximises any opportunity to take advantage of the use of settlement discussions.

For further information on Settlement Discussions and Agreements call our employment law team on 01895 207892. Alternatively email your details to