We have an employee whose probation has been extended and is not performing. He is likely to be let go with 11 months’ service. We would like to give him an additional six months to get another job. Can we use a compromise agreement to get him to agree not to take an unfair dismissal case where the consideration is that he keeps his job for six months? We would pay for a solicitor for him.

In order to bring a claim for unfair dismissal under the Unfair Dismissals Acts 1977 to 2015 (the “Acts”), an employee must be in a position to demonstrate that he has one year’s continuous service with his employer. Therefore, on the provision of six months additional service, the employee will be eligible to bring a claim under the Acts in respect of his dismissal.

While there is no obligation to do so, the employer may wish to offer the employee an ex gratia payment in consideration for the employee signing a compromise agreement, waiving his entitlement to bring a claim under the Acts against the employer.

Some form of payment (other than what the employee is entitled to, e.g. pay in