L for Lawful Severance Agreements

Aisling Butler writes:

1. Introduction

Employers often ask how they can ensure that an employee will not take a case against the employer once the employee’s contract of employment is terminated. While it is open to an employee to take any case s/he may wish, a severance agreement, provided it fulfils a number of criteria, can prevent an employee from succeeding in a subsequent claim.


2. When can an employee contract out of his/her right to take a claim?

Severance agreements are a means for the employer to provide consideration to an employee in return for the employee’s agreement that such consideration is accepted in full and final settlement of all and any claims which that employee has or