Emily Kearsey outlines the top five mistakes made by employers when drafting settlement agreements
When used properly, settlement agreements can be a simple and pragmatic tool to resolve employment disputes. The employee usually benefits by receiving a severance payment and the employer achieves peace of mind knowing that the employee has left and can no longer sue them. However, as employment lawyers, we tend to see the same drafting mistakes again and again. At best, these errors cost management time and legal costs by drawing out negotiations. At worst, a simple error can invalidate the settlement agreement, leaving employers exposed to future claims.