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ARTICLE · 06 APRIL 2023

What Should Academy Trusts Consider Before Making A Settlement Offer To School Staff?

Wrigleys Solicitors LLP
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Ensuring compliance with ESFA guidance on severance payments.

United KingdomConsumer Protection
Alacoque Marvin
Alacoque Marvin
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Ensuring compliance with ESFA guidance on severance payments.

Entering into a settlement agreement with a member of staff can sometimes be in the best interests of an academy trust. They can provide a measure of certainty and closure where there are risks of a claim arising from employment or termination. However, there are significant compliance requirements which should be carefully considered before entering into settlement discussions.

Academy trusts should ensure that any offer of an agreed exit complies with Education and Skills Funding Agency (ESFA) guidance on severance payments set out in the Academy Trust Handbook. Making an offer to a member of staff before consulting this guidance can lead to unrealistic expectations, damaged staff and union relations, and a breakdown in without prejudice negotiations.

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