PROMOTION Can we speak off the record? It is that time of year when many businesses are approaching their financial year end. Managers and HR teams will be looking forward to next year's budget. With people costs being the largest overhead for manycompanies, sights may be set on headcount reduction Ifyou are a business owner or a manager tasked with implementing a decision to move someone on swiftly via a settlement agreement process, here are some do's and don'ts to bear in mind, to ensure the process is as smooth as possible, whilst protectingthe business from risk I. Preparethoroughly forthatinitialconversation, takingadvicefrom your HR team or from external advisers in advance. Be careful not to use this process where there is a complaint of discrimination. 2 Preface yourconversation as beinga 'without prejudice settlement discussion: This should ensure that the cowersation cannot be referred to in subsequent court proceedings. 3. Be sensitive to the fact that the employee may be shocked and upset. They may benefit from having something in writing to take away from the meeting which summarises the key points you will have covered verbally, particularly the financial terms suggestthat terminationofemploymentisaforegoneconclusionif due HR processes without prejudging the outcome. 4. Don tpeessurise the emplkoyee to accept an exit arrangement or they reject the offer. Ifnegotlations break down, you must follow Reviewthe ACASCode on Settlement Agreements which requires 5. for example, you to give the employee around 10 calendar days to sign up to the agreement &. Ensurethat the employee and any other staf invoved internally are clear that they must keep the discussions confidential. 7. Identify who in the business will be the contact point for the employee's independent lawyer, who may ask for changes to the agreement before it canbe concluded. For more information or advice please contact Louise Attrup, Partner Debenhams Ottaway 01727 735663 la@debenhamsottaway.co.uk www.debenhamsottaway.co.uk DEBENHAMS OTTAWAY SOLICITORS Your aspirations are our inspiration