This document can be used as a template for a letter to initiate a discussion of settlement. It is to be used by the employer / the human resources department to discuss a deal/offer for the employee to leave the current position/ be released from the current position in exchange for a payment.
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The document titled 'Letter to Initiate Settlement Discussion' is an important document that is used to initiate settlement discussions with an employee. It is typically used when there are concerns about the employee's conduct, attendance, or performance. The document starts with a confidential settlement proposal, offering the employee an option to bring the employment relationship to an end through a settlement agreement.
The document begins with a brief introduction, addressing the employee and stating the purpose of the letter. It mentions the concerns about the employee's conduct/attendance/performance and explains that one option is to offer a settlement agreement. It also clarifies that if an agreement cannot be reached, the company will proceed with the disciplinary or performance management procedure.
The terms of the settlement proposal are then outlined. It states that the employee's employment would end on a specific date and lists the payments the employee would receive, including wages/salary, bonus/commission, and outstanding holiday entitlements. It also mentions that the employee would agree not to bring any claims to an employment tribunal and would receive an agreed reference.
The document concludes by offering to arrange a meeting to discuss the proposal and terms of the offer. It mentions that the employee can be accompanied by a work colleague, trade union official, or representative. It states that the offer is subject to the final agreement of full terms and provides a reasonable expiration date for considering the offer. It also mentions that independent advice would be required before signing the formal agreement.
In summary, the 'Letter to Initiate Settlement Discussion' is a document that is used to propose a settlement agreement to an employee, outlining the terms of the agreement and offering the opportunity for discussion and independent advice.
Guidance for using the 'Letter to Initiate Settlement Discussion':
1. Begin by addressing the employee and clearly stating the purpose of the letter, which is to initiate settlement discussions.
2. Explain the concerns about the employee's conduct/attendance/performance that have led to the proposal of a settlement agreement.
3. Offer the terms of the settlement agreement, including the date of employment termination and the payments the employee would receive.
4. Clearly state that the employee would agree not to bring any claims to an employment tribunal and would receive an agreed reference.
5. Provide the option to arrange a meeting to discuss the proposal and terms of the offer, allowing the employee to be accompanied by a work colleague, trade union official, or representative.
6. Specify that the offer is subject to the final agreement of full terms and provide a reasonable expiration date for considering the offer.
7. Emphasize the requirement for the employee to obtain independent advice on the proposed agreement before signing it.
By following these steps, the 'Letter to Initiate Settlement Discussion' can be effectively used to initiate settlement discussions with an employee in a clear and concise manner.