Employment Settlement Agreements or compromise agreements are frequently signed where an employee is exiting a business.
Benefits to the employer are
- that they close down any risk of potential employment litigation
- they allow them to clarify notice periods, gardening leave and the return of property
- It allows confidentiality and non-disparagement clauses
- It can provide for the return of company property.
Benefits to the Employee of employment settlement agreements are
- It allows negotiation of an ex-gratia payment (non-contractual payment which can be received tax free)
- It may provide a written reference
- It allows confidentiality and non- disparagement clauses.
Typical elements of Employment Settlement Agreements
- Termination Date
- Payment terms and dates
- Dealing with notice periods
- Dealing with the return of company property
- Dealing with ex-gratia or non contractual payments
- Tax treatment
- Confidentiality Clauses
- Non disparagement clauses
- Listing of the types of claims that are settled including employment or personal injuries or other statutory claims.
- Indemnities may be provided
- A reference may be provided.
- It can include a provision that is settled without an admission of liability.
- Pension benefits can be provided for
- A clause to confirm legal advice has been provided
An employment settlement agreement is a mechanism to settle employment exit disputes in a low risk confidential way.
Setanta Solicitors advise both employers and employees on employment law. Please contact us to schedule a no obligation consultation at info@setantasolicitors.ie or 01 215 0168
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