Negotiating Settlement Agreements: Top Tips

Settlement agreements, when used appropriately, are an essential part of most organisations' HR strategy.

Settlement agreements, when used appropriately, are an essential part of most organisations HR strategy. They offer a way for an employer and the employee to agree terms for the employee's exit. In the first instance, there will normally be a background that prompts the decision to offer the agreement. This could either be as a result of a voluntary redundancy exercise, or due to concerns about the employee, that has led to the business looking at ways to agree the employee's exit.

Either way, the employer should have a strategy in mind early on to try and achieve the desired outcome i.e. a mutually agreed exit, with the employee signing a settlement agreement and receiving a termination package that compensates them for their employment ending.