- Gig Economy Workers denied holiday pay may claim for the whole of their employment - The European Court of Justice in his landmark legal battle. The court has ruled that "An employer that does not allow a worker to exercise his right to paid annual leave must bear the conse-quences". The decision could have significant implications for firms in the so-called gig economy, and opens the door for similar cases.
- New Regulations for Legal Aid criteria for Family Law announced - Following a successful High Court appeal by the charity group Rights of Women, the Legal Aid Agency have now relaxed the time limit set for the domestic violence evidence required...
Termination of Employment and Settlement Agreements
An employee with sufficient (subject to some exceptions) continuous employment has the right not to be unfairly dismissed, which means they can only be dismissed for one of a number of specific fair reasons and the dismissal must be fair in the circumstances.
Some dismissals are also classed as being “automatically unfair”. For some, but not all of these reasons, the employee does not need the minimum period of employment mentioned above.
The disruption to a business along with the potential awards for unfair dismissal can be considerable.
To avoid the risk of an employee pursuing a claim of unfair dismissal following the termination of their employment, you may prefer to agree settlement terms with them instead.
Once terms are agreed, it is important to set these out in a formal Settlement Agreement. This is the only method by which an employee can validly give up their statutory employment rights. A Settlement Agreement is a written document that contains specific terms and the employee must take legal advice on the terms and effect of the proposed agreement. Normally, therefore, the employer also agrees to pay a contribution towards the employee’s legal costs for this advice.
We can advise you on how to minimise the risk of a claim of unfair dismissal and, where appropriate, prepare valid Settlement Agreements setting out agreed terms. If you would like to discuss this in more detail, please telephone Albert Bargery on 01296 318500.