Facing potential legal claim is obviously very stressful for any business, with significant financial and reputational ramifications. You will be looking to take the right steps to resolve the dispute and protect your business, but may be unsure what those steps should be.

That is why the Commercial Dispute Resolution team at Attwaters is here.

We can advise you on the pros and cons of settlement agreements and support you in drafting an agreement that works for both parties, ensuring you can both move on with the minimum stress, hostility and financial upset.

What are the benefits of settlement agreements for employers?

• It can be more cost-effective than the potential cost of an employment tribunal
• Settlement agreements contain a confidentiality clause, ensuring that your company will not be brought into disrepute
• Even with a solid case, you can’t be sure that an employee’s case will be dismissed at tribunal – a settlement agreement gives you control over the outcome

What are the disadvantages of settlement agreements for employers?

• They can be interpreted as an admission of guilt
• It sets a precedent – other disgruntled employees may expect the same treatment
• There are limitations on what settlement agreements can achieve – for example, confidentiality clauses don’t cover ‘protected disclosures’ (whistleblowing)

How we can help

The Commercial Dispute Resolution team at Attwaters can provide employers with the specialist legal advice they need to decide on the best course of action for their circumstances.

We can help you:

• Draft a settlement agreement that is mutually acceptable to both you and your employee
• Advise you on the strength of your employee’s claim should it go before an employment tribunal
• Support you in negotiating terms with your employee