They are usually used to terminate an employee’s employment, and if negotiated properly, are a very useful tool for employees and employers as they enable the employer to ensure that no future claims will be made by an employee, whilst allowing an employee to receive a financial payment (very often tax free) as compensation for giving up such rights. They save the need for employment tribunal proceedings which can be expensive and time-consuming, and may attract potentially damaging publicity.
In order to be binding, there are several requirements that must be fulfilled, however, the most important is that the employee must take independent legal advice on the contents and the effect of the agreement before agreeing to enter in to it.
We Can Advise On
The Employment Law solicitors at Banner Jones are specialists in advising on, and preparing, settlement agreements. We can help advise on:
- The tax implications of the compensation to be paid
- The inclusion of an indemnity for any tax
- The provision and content of a reference
- Restrictive covenants (whether existing or new) and confidentiality, as well as restricting comments after termination
- The types of claims that shouldn’t be included in a settlement agreement
We understand that once a decision has been made to enter in to a settlement agreement, time is of the essence and we are able to work within very short deadlines without any compromise to our quality of service. Settlement Agreements are usually paid for by your employer and you are free to choose which solicitor you use to get the legal advice required.
Frequently Asked Questions
You need to be able to justify if you are asking for certain levels of experience. Advertising for a bus driver who is safe and has had previous experience is one thing advertising for a bus driver with 10 years’ experience is another. The first option leaves your job advert open for all ages to apply. The second rules out individuals who may be in their early twenties.
Other points to consider when recruiting new employees:
- Ensure whoever is interviewing potential employee’s scores interviewees on their skills and competencies as opposed to their age.
- Although they are not discriminatory themselves consider removing any reference to age on your job application forms.
- Don’t ask a potential employee for a physical fitness test unless you require them.
Once you have selected an appropriate employee ensure managers and staff are trained to monitor and avoid any discriminatory behaviour. Also make sure it is clear within any policies you have that discrimination in any form is unacceptable. Ensure managers are fully trained in diversity issues and that they are able to deal with discriminatory issues that arise within the workplace.
Yes you need to be aware of these requirements if you employ anyone of any age. They affect every area of employment as well as the recruitment and selection process. The requirements not only make it unlawful to discriminate on the grounds of age but also harassment whether it be intentional or unintentional or to victimise an individual.
You need to worry not only about your own actions but also your fellow employees who must be discouraged from making offensive or unkind comments about age or anything in between.
As with other areas of discrimination if your employee can demonstrate that there has been a difference in treatment which is due to discrimination it is solely down to you the employer to show otherwise or for you to prove that you have done everything in your power to stop such discrimination. There are no limits to discrimination awards and often they include an aspect for suffering, failure to do so can be expensive.
When you are recruiting employees you need to ensure you are not discriminating for or against anyone due to their age. This means you cannot advertise specific age requirements in any of your job adverts unless you can justify them.
If you interview someone in their sixties and they turn out to be as good or even better than your current employees in their twenties you should not let their age be a determining factor as to whether you hire them or not. Since October 2006 it has been unlawful to reject anyone for an interview based on their age. There is not a lot employers can do to control the age of their workforce therefore you would potentially have to recruit someone in their sixties even if you have a younger workforce.
In 2011 legislation new legislation was introduced making it unlawful to treat anyone differently due to their age except if it could be justified or falls within one of the exemptions to the law. The retirement age of 65 has now been phased out meaning employers can now only forcibly retire workers if it can be justified.
The Employment Equality (Age) Regulations came into effect in October 2006. The retirement age of 65 was phased out between April 2011 and October 2011.
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