Some employers may consider offering an employee a settlement agreement rather than experience the time and hassle of putting someone through a painful and time consuming capability or performance management process.
If you have more than 2 years’ service with your employer, you are far more likely to be offered a settlement agreement – this is because employees need more than 2 years’ service to bring a claim for ordinary unfair dismissal.
If there are performance related issues at play and you have less than 2 years’ service, then there is a good chance your employer will just serve notice to terminate or end your employment immediately by making a payment in lieu.
If you are offered a settlement agreement, then the value of any payments will be determined by a number of different things including (a) how long a capability or performance related process might take before you could be dismissed fairly (b) whether you have a medical condition that might constitute a disability (c) your notice entitlement and (d) your employer’s willingness to make a payment to save going through a time consuming process.
As in life generally, timing can be everything with regard to negotiating a good deal for any settlement agreement.
At aiMac-hr we have the necessary expertise to know and understand the right tactics to adopt so that you can secure a generous settlement package. Every exit strategy has to be approached in the correct way to avoid being offered a paltry sum. We can certainly help you secure the best deal possible.
That said, it is also very important to remember the old adage that “money isn’t everything” because other factors may be just as important to you in deciding to negotiate a settlement agreement. For example, the provision of a positive and helpful reference and/or a release from existing restrictive covenants.