Case Study 3 – Settlement Agreements

A commercial client required legal advice in relation to an employee who had been absent from work due to ill-health for a prolonged period. Having obtained an occupational health report and implementing the recommended reasonable adjustments, the employee still felt unable to return to work and was unable to commit to a phased return at some point in the future. Given the lack of certainty, the Company’s existing employees were unable to absorb the employees’ duties on a long-term basis and the Company felt that it had little alternative but to consider recruiting someone else for the role. The Company held a without prejudice conversation and the employee confirmed that they would be interested in continuing the discussion with regards to an amicable exit. We drafted the settlement agreement and negotiated terms with the employee’s representative. The agreement was completed enabling the parties to move forwards. By finalising matters in this way, the uncertainty and potentially high cost of an Employment Tribunal and a potentially significant award of damages had a disability discrimination claim been successful was prevented.

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