It is common for issues to arise in the workplace and for an employer and employee to reach an agreement whereby the employee will exit their employment on amicable terms. Where agreements of this kind are made, it is vital that they are recorded in a properly drafted settlement agreement, such as a Deed of Settlement and Release. A failure to do, allows the employee to still make a claim against the employer regarding the relevant issue and/or the cessation of their employment.
Common mistakes we see
- not having negotiations on a without prejudice basis
- an agreement is reached, and money is paid to the employee by the employer, but a Deed of Settlement and Release is not signed by the parties
- not having an appropriately drafted Deed of Settlement and Release that covers all issues between the employer and employee that a release is to be provided for
- applying duress on the employee to sign a Deed of Settlement and Release which risks making it unenforceable
How can we help
We regularly assist employers with resolving workplace issues by:
- preparing a script for the employer to follow when meeting with the employee, including having a without prejudice discussions;
- negotiating settlements, including preparing formal without prejudice offers of settlement; and
- preparing appropriately drafted settlement agreements such as Deeds of Settlement and Release which will protect your business to the extent possible at law and which will typically prevent an employee from making any further claims against the employer.
If you have an issue in the workplace that you are having difficulty resolving, speak to one of our Employment Lawyers.