The End of the Furlough Scheme
The furlough scheme is due to end on 30 September 2021 and sadly this is likely to result in a renewed focus on redundancies and the employment market. For an employee or an employer, the termination of employment can be very stressful and take up a considerable amount of time. The parties may consider the best way to formalise the termination of an employment contract is by agreeing the terms of a settlement agreement. 16/9/21
The purpose of a settlement agreement is to allow an employer and employee to terminate an employment relationship with certainty for all sides. This should avoid any potential costly disputes in the future. It is important to ensure the agreement is properly drafted to reflect the unique circumstances of the termination. Failure to put in place a settlement agreement, may result in an ongoing risk of potential liability after the active employment relationship has come to an end.
What should a settlement agreement contain
Settlement agreements need to meet certain standards to be legally enforceable. These are:
- The settlement agreement must be in writing.
- The settlement agreement must relate to the individual situation and not a generic document.
- The settlement agreement must state that the legal conditions regulating settlement agreements are satisfied for it to be valid.
- There must be a named independent legal adviser from whom the employee has received advice relating to the terms and effect of the proposed settlement agreement.
- The legal adviser must be covered by professional indemnity insurance.
If the settlement agreement fails to comply with these legal requirements, it will not be valid and an employee may still be able to pursue a claim against the employer.
Farnfields employment team have the legal expertise to advise you and ensure your settlement agreement is legally binding, from the perspective of an employer or employee. We can help you through the process with efficiency and ensure the best result is achieved. Call us on 01747 825432 or email email@example.com
Related News & Events
Written by: Nigel Mills, employment law specialist with Farnfields solicitors. “What’s in a name?” asks Shakespeare’s Juliet, declaring that a rose would smell just as sweet whatever we call it. But that argument is unlikely to hold water in today’s working environment. Getting names exactly right is increasingly important, whether it’s the pronoun you use
While many workplaces continue to be affected by the coronavirus pandemic, employment law and the Acas Code of Practice concerning disciplinary and grievance procedures still apply. Furloughed workers If you are currently on furlough, it is still possible to be involved in disciplinary or grievance procedures. Whilst on furlough, you may: Take part in a
The Job Support Scheme (JSS) will replace the furlough scheme and will come into play on 1 November 2020. In this article, we look at FAQs covering how the scheme works, who is eligible and specific difficulties employers and employees might have concerns about. Which employees are eligible for JSS? Employees who have been on