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When considering settlement agreements the starting point is almost always thinking through how to structure the financial elements.

But supporting exiting employees and ensuring settlement agreements encourage individuals to have the confidence to flourish (and even return one day) once they’ve left your employment doesn’t stop there. Here are our thoughts on settlement terms that often cost little but can achieve a lot.

Continuing employee benefits

If you’ve already paid the annual premium for benefits (such as private medical or life assurance), allowing access to those benefits for an agreed period after the employee has left (subject to insurer approval) allows the employee to feel protected until they secure their next role (possibly with similar benefits).

Outplacement and coaching support 

It may be years since the exiting employee dusted off their CV or attended an interview. This support gives confidence to those concerned about putting themselves ‘out there’ and searching for a new job. Even for those happy to start the search, outplacement and coaching can help to polish off their CV and interview skills.

Financially, you can set a capped contribution for the support (so it won’t break the bank) which can be offered tax efficiently. Our Empowering People Group can provide this support – click here to learn more.

References and announcements

Agreeing on a factual reference and internal/external announcements means you can work with the exiting employee controlling the messaging around their exit and supporting them with their hunt for their next role.

Fast payment 

Promising speedy financial settlement payments means the exiting employee feels they’re in touching distance of the financial support, costing you nothing but helping the employee to manage outgoings.

Get in touch if you’d like to discuss reviewing your template settlement agreement, or any redundancies or settlement agreements you’re proposing. Our next update in this series will focus on limitations to confidentiality clauses and different types of agreements. 
This update is accurate on the date it was published, but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.