Settlement agreement

I have a situation and I was hoping someone could provide some clarification on:

 We (My employer) are currently in the process of conciliation with an employee. A settlement agreement has almost been reached but one of the requests the employee has is that they set the terms / reason for termination of employment – e.g. redundancy.

The background to the situation is that the employee underwent a capability process, failed to meet the required performance standards and went off sick prior to a pre-set hearing date. The employee had remained off sick for over a year and a half and has communicated that they do not wish to return to work (Via mediators)

 My question is, is the company at any risk if they are to agree to this term (Agreeing that the terms /reason for termination is redundancy)?

 Thank you

  • Apart from that its not honest and it is misleading (and therefore of questionable ethical standing) I don't think there is a legal reason why you cant call it what you will.

    He is likely to face far harder challenges if he has an insurance policy linked to redundancy as they will question you and to that you would have to be honest which may cause you issues.

    I am amazed someone has been off for 18 months

    Personally I wouldn't agree to it
  • We provide factual references to all employees stating dates of employment and job title only thus avoiding litigation for poor references. You could offer similar
  • As part of the Settlement, a reference can be agreed that doesn’t state reason for leaving (assuming you’re process does include reason). Other than that I don’t believe there would be any reason to disclose this info to anyone.