Settlement Agreements can achieve this and regularly arise in redundancy situations.
Whatever the circumstances, the agreements can play a very important role and provide an acceptable compromise between the employer and employee which allows both parties to move on. The agreement will be a legally binding contract to end an employment relationship on agreed terms. They can be proposed by either the employer or an employee. There are important factors to bear in mind:
The agreement only becomes binding once the employee, their advisor and the employer have signed it. At that point, the timetable set out within the agreement commences (for payment of notice pay/termination for loss of office etc).
At Thomas Flavell & Sons, we can assist you in the preparation of the agreement to best serve your business. We will advise you on the strategic and practical points to consider when managing exits from the business and explaining potential pitfalls and how to avoid them.
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