Pre-Termination Discussions

Pre-termination discussions allow employers to have a confidential conversation with an employee about a potential exit from the business, even where no formal dispute or procedure is already underway. Introduced under the Enterprise and Regulatory Reform Act 2013, these discussions ? and any settlement agreement that follows ? cannot be used as evidence in an unfair dismissal claim, provided the process is handled correctly.

Used properly, pre-termination negotiations offer a practical and cost-effective way to agree a clean exit while protecting both parties. Used poorly, they can expose the employer to significant legal risk.

We help you to:

• understand when a pre-termination discussion is appropriate and how it differs from a traditional without prejudice conversation
• prepare for the discussion in a way that is sensitive, professional and legally sound
• avoid conduct that would remove the confidentiality protection, such as undue pressure, coercion or discriminatory behaviour
• allow the employee sufficient time to consider any offer and take independent legal advice
• draft settlement agreements that meet the five statutory conditions required for them to be legally binding
• understand which claims ? including discrimination and automatic unfair dismissal ? fall outside the protection of pre-termination negotiations
• manage the situation if negotiations break down and a formal procedure needs to follow