Settlement agreements are generally used by employers to settle potential employment claims, but they are also commonly used as an alternative to dismissal by redundancy.
Notwithstanding the reasons for making someone redundant, the employer must still follow a fair and lawful redundancy process. Using a settlement agreement in a redundancy situation can help to avoid a lengthy redundancy procedure, including meeting the relevant requirements to consult with those at risk of redundancy, ensuring fairness in selection and giving the requisite notice.
What is a settlement agreement?
A settlement agreement is a legally binding document between employer and employee to settle any claims arising out of the employment relationship. It is a written agreement, regulated by statute, in which an employee agrees to waive their right to bring certain tribunal claims, usually in return for a lump sum payment and a favourable reference.
These types of agreement are designed to document the terms upon which the parties to a workplace dispute have decided to resolve that dispute without recourse to litigation.
However, a settlement agreement can also be used in the absence of an existing dispute, for example, to bring an employee’s contract of employment to an end on agreed terms, with provision for the employee not to pursue any unfair dismissal or other tribunal claim.
Doyle & Company LLP Employment Lawyers
If you have an issue with your redundancy or severance agreement. Our legal specialists are qualified, experienced and fully aware of all the current laws, rules and regulations as well as the latest legislation and procedures.
We will be able to advise you on:
1. Terms of your Severance Agreement or Redundancy Agreement.
2. Any clauses of concern – we will review the terms of your agreement against what clauses we expect to see in these types of agreements.
3. Your statutory entitlements.
4. Your Alternative Options (i.e. do you have a right of action in the Workplace Relations Commission)