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Labour Relations Agency Settlement Agreement

Labour Relations Agency Settlement Agreement: Everything You Need to Know

The Labour Relations Agency (LRA) was set up in Northern Ireland to promote good employment practices and resolve workplace disputes. The LRA provides advice, conciliation, and arbitration services to employers and employees. In many cases, disputes can be resolved through negotiation and mediation. However, if this fails, the LRA may recommend that both parties enter into a settlement agreement.

A settlement agreement is a legally binding contract that sets out the terms of a settlement between an employer and an employee. It is an alternative to going to an employment tribunal. The agreement usually states that the employee will not pursue any legal claims against the employer in return for a sum of money and other benefits.

The settlement agreement must be in writing and signed by both parties. It must also be accompanied by independent legal advice for the employee. The employee’s legal advisor must sign a certificate confirming that they have provided the necessary advice.

The LRA can provide free advice to employees who have been offered a settlement agreement. This ensures that both parties understand the terms of the agreement and that the employee’s rights are protected.

Some of the key features of a settlement agreement include:

1. Termination of employment

The agreement will state that the employee’s employment will be terminated on a specified date. This is usually done by mutual agreement.

2. Payment

The agreement will state the amount of money that the employee will receive. This can include payment in lieu of notice, compensation for loss of employment, and any other benefits.

3. Post-termination restrictions

The agreement may include restrictions on the employee’s future employment. This could include a non-compete clause, which prevents the employee from working for a competitor for a certain period of time.

4. Confidentiality

The agreement may include a confidentiality clause, which prevents both parties from disclosing the terms of the agreement to anyone except their legal advisors and immediate family members.

5. References

The agreement may include a reference clause, which sets out what reference the employer will provide to the employee. This can help the employee find new employment more easily.

In summary, a settlement agreement can be a useful way to resolve employment disputes without going to a tribunal. However, it is important to remember that the employee must receive independent legal advice before signing the agreement. This ensures that they fully understand the terms of the agreement and their rights are protected. The LRA can provide free advice to employees who have been offered a settlement agreement.