What is this settlement agreement template?
The basics: Hiring is a key part of running a business, and while it promises a lot of rewards, it can also provide complexity. While the goal is to avoid any sour relationships, invariably in a company’s lifecycle disputes will arise. Depending on the nature of the dispute, there may be instances where an employee has a legal right to bring a claim against the business. This is a potential risk that any company would be wise to mitigate. This settlement agreement template allows an employer to settle a dispute while protecting the business from legal risk.
When to use this settlement agreement template: A settlement agreement is used when there is a dispute between an employer and employee, and the employee agrees to waive (whether that’s to give up or agree not to use) their legal right to bring a claim against their employer in return for a lump-sum payment. This is often (but not always) used when the employee has been dismissed or is going to be dismissed.
Benefits of agreeing: This settlement agreement template has many benefits for both the employer and the employee. It offers certainty, reassurance and closure, rather than having to wait for an employment tribunal case or a court case to conclude. It also increases control as both parties agree to the certain and written terms of a settlement agreement, rather than having the uncertainty of an employment tribunal decision or a court decision. In the best case, the agreement can be used to not only resolve the dispute but also to preserve the relationship between employer and employee.
Must be voluntary: A proposed settlement agreement is an offer and the employee can refuse that offer if they don’t agree to the terms. As voluntary agreements, settlement agreements are not legally binding until the terms have been agreed and signed by all parties.
Important to note: The employee must receive independent legal advice and their legal advisor must provide a signed statement for the settlement agreement to be legally enforceable. It is not an admission of liability by the employer, but a method to expediently conclude a dispute and mitigate the risk of litigation.
Why use Docue's settlement agreement template?
Clarity and transparency: This settlement agreement template prompts you to clearly define arrangements following termination and how the settlement will be dealt with. This provides both parties with a clear roadmap, reducing confusion and ensuring everyone understands their obligations and entitlements under the agreement.
Speedy resolution: Avoid prolonged legal disputes. Our settlement agreement template expedites the resolution process, enabling swift closure and enabling both parties to move forward positively.
Preserving relationships whilst protecting your business: Ending an employment relationship doesn't have to mean burning bridges. Our settlement agreement template focuses on protecting your business and clarifying the process following the termination of employment. The template includes "no admission" and "waiver of claims" clauses to protect both parties from legal complexities, ensuring that the agreement does not imply guilt or wrongdoing.
Financial efficiency and security: By outlining the costs involved, this settlement agreement template ensures both parties are aware of the financial implications. The structured termination payment also offers financial stability to the departing employee, reducing financial uncertainties during the transition period.
Created by lawyers: Docue’s platform allows you to access and customise a lawyer-made settlement agreement template so that all of the details are tailored to the relevant dispute as necessary (including details regarding termination arrangements, termination payment, waivers, warranties, indemnities, and confidentiality provisions). If you wish, you can always edit our model clauses according to your preferences or write your own clauses.
How does Docue’s commercial settlement agreement template work?
Top-notch technology: With Docue’s high-quality template, you can create a valid settlement agreement easily and quickly in just a few clicks. The intuitive tick-box and text-box options streamline the entire experience, ensuring that you cover all necessary details.
Extensive model clauses: Our dynamic settlement agreement template covers, among other things, the following matters:
- Arrangements on termination
- Termination payment
- No admission
- Waiver of claims
- Employee warranties and acknowledgements
- Employee indemnities in favour of the employer
- Company property and information
- Restrictive covenants and intellectual property
- Subject to contract and without prejudice
When should this template not be used?
Resolving B2B disputes: While our employment settlement agreement template is tailored for resolving issues arising within employer-employee relationships, it will not be suitable for commercial disputes between businesses. If you are dealing with a business-to-business disagreement, particularly those involving commercial contracts, transactions, or partnership matters, our commercial settlement agreement is a more appropriate template.
Easy to use: To create your letter of settlement agreement with confidence and speed, simply click through the intelligent tick box options and text box answers and you’ll have a comprehensive, tailored, and ready-to-use agreement in no time.
Full contract process: Once you have created a contract that is tailored to your circumstances using the settlement agreement template, you can send the contract to the other party for e-signing. In addition to collecting signatures electronically, you can store the agreement in Docue’s storage vault to ensure you always have quick and easy access to your contracts in one place.
Transparent pricing: At Docue, we believe in providing transparent and cost-effective pricing options for our services. We understand that affordability is a key consideration for businesses of all sizes. That's why we offer competitive and transparent pricing plans tailored to meet your specific needs. With our pricing structure, you have the flexibility to choose a plan that aligns with your budget and requirements. We provide clear and upfront information about our pricing tiers, ensuring there are no hidden fees or unpleasant surprises along the way!
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Tags: settlement agreement template, settlement agreement, employee settlement agreement, employment law settlement agreement