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Settlement Agreement - 10 Day Considerations Requirement

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  • Settlement Agreement - 10 Day Considerations Requirement

    Hi there, I have a question about the requirement for 10 days of employee consideration on a settlement agreement. Timeline details of the case below:

    1. Employee has 2+ years of service and the potential for a protected characteristic.
    2. Company has performance concerns about the Employee.
    3. Company holds a protected conversation with the employee.
    4. Company tells Employee that the protected conversation is highly confidential in nature, and should not be disclosed to anyone other than family / partner.
    5. Company follows up the confidentiality requirements in writing. Confidentiality breach is listed explicitly within the company handbook as being gross misconduct.
    5. Employee receives 10 days at full pay to consider the terms of the settlement agreement + a budget for legal advice.
    6. Employee declines the settlement agreement on day 10.
    7. Employee submits a grievance on day 10.
    8. Employee goes "on the sick" on day 10.
    9. Company receives word from another employee (Colleague), that the Employee in question has disclosed the nature of the settlement discussions to them.
    10. Colleague confirms that the disclosure was in writing, and provides the Company with a screenshot.
    11. Company now has a case for gross misconduct and summary dismissal.
    12. Company would like to confront the Employee with this information when they are back from "the sick".
    13. Company would like to re-offer the settlement agreement, but with the following terms, now that there is a very clear cut case for summary dismissal and no notice pay:
    a) The settlement figure is reduced to just £1.
    b) Employee receives their notice period.
    c) No deductions for overused holidays.

    Questions:

    1. Given that the employee very recently turned down the original settlement agreement, does the Company need to offer another 10 days at full pay for the employee to consider again (as per 13.)
    2. As above, does the Company need to offer a further budget for legal advice (as per 5.)

    Thanks!
    Tags: None

  • #2
    Did the budget for legal advice in relation to the first settlement get billed by the solicitor that advised on that agreement and get presented to the company for payment?

    In terms of time to agree then my view is that given the changed circumstances the company would not need to be giving 10 days. A settlement agreement without complexity, as this would potentially be, can be agreed within a few days.


    If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

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    Comment


    • #3
      Hi ULA, thanks for your response.

      RE the solicitor fees - no, the Company has not yet been presented with an invoice/bill for this.

      Thanks for your thoughts on the 10-day requirement. It's a tricky one; there's not much in the way of resources about this online.

      Comment


      • #4
        There will need to be some consideration for legal fees for and advisor to review a new settlement agreement (SA) so it would be better to consider using the same as was used for the previous SA.

        There is limited resource on this because there is no legislation or ACAS guidelines around time to agree a SA.
        If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

        I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

        I do my best to provide good practical advice, however I do so without liability.
        If you have any doubts then do please seek professional legal advice.


        You can’t always stop the waves but you can learn to surf.

        You are braver than you believe, smarter than you think and stronger than you seem.



        If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

        Comment

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