Employment can end in several ways, each with different rights and obligations.

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Three main ways employment can end

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• Dismissal by the employer

• Resignation by the employee

• Mutual agreement

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Notice periods

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The law sets minimum statutory notice periods, unless:

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• the employee is dismissed for gross misconduct, or

• the employee resigns due to constructive dismissal.

 

Statutory minimum notice from the employer

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• 1 week if employed for at least 1 month but less than 2 years

• 1 week per full year of service, up to 12 weeks

 

Statutory minimum notice when resigning

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Employees with at least 1 month of service must give at least 1 week’s notice, unless their contract requires more.

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Contractual notice

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Contracts may set longer notice periods, but never shorter than the statutory minimum.

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Settlement Agreements

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A Settlement Agreement is a legally binding contract in which:

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• the employee agrees not to bring legal claims against the employer, and

• the employer provides compensation or other benefits in return.

 

Key features

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• Must be voluntary.

• The employee must receive independent legal advice for the agreement to be valid.

• The employer usually pays for the legal advice.

• Agreements often include:

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– compensation,

– termination date,

– agreed reference,

– confidentiality clauses,

– holiday/bonus calculations.

 

Why employers offer them

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• to avoid legal claims,

• during restructures,

• when the working relationship has broken down,

• to end employment quickly and cleanly.

 

How I help

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• reviewing the agreement,

• negotiating better terms,

• explaining your rights and risks,

• providing the required independent legal advice.