Settlement agreements have an important role to play for the employer to settle issues or disputes that may arise with its employees, whether such matters relate to the subsistence of the employment relationship or to its termination.
A settlement agreement may be entered into with an employee to address a grievance, concern or requirement that the employee may present to the employer. The employer may also resort to entering into a settlement agreement with an employee to formalise certain terms and conditions regulating the termination of such employee’s relationship with the employer, as a preventative measure to avoid the institution of a dispute before the Industrial Tribunal.
The utility of settlement agreements may also be resolutive, such that the employer and an employee may resort to entering into a settlement agreement to resolve and settle an ongoing employment dispute which would have initially been instituted by the employee against the employer before the Industrial Tribunal.
A settlement agreement may be used to regulate various aspects of the employment relationship and, in particular, its termination, as illustrated by the following examples:
A settlement agreement may regulate the nature and amount of financial compensation that the employer may agree to pay to the employee in view of the termination of their employment relationship.
Such an agreement may also prescribe, alleviate or even remove certain duties that may be incumbent upon the employee, such as confidentiality, non-competition and non-solicitation obligations.
A party to a settlement agreement may agree to waive an entitlement accruing to such renouncing party by virtue of the employment contract.
A party to a settlement agreement may also agree to indemnify and hold harmless the other party for certain damages, losses or actions that may arise in relation to or as a result of the employment relationship.
When negotiating the terms of a settlement agreement with an employee, the parties should ensure that they consider any statutory parameters and obligations that may be prescribed by virtue of any applicable law or regulation at the time.
Considering the potential implications that a settlement agreement may have in respect of an employment relationship, due care should be taken to ensure that legal advice is sought as soon as the employer identifies a situation or matter that may require resolution by virtue of a settlement agreement.
At Empleo, we provide legal advice to employers and employees on all matters outlined above, including advice and assistance in the negotiation and preparation of settlement agreements.
Some of our services in this area include the following:
You may get in touch with us here to request an initial free legal consultation in relation to any of the matters outlined above.
Mariella graduated from the University of Malta with a doctorate in law in 2005. She completed a master’s degree in ‘European Private Law’ from the La Sapienza, University of Rome, and was admitted to the bar in Malta in 2006.
Mariella is a people person – and it is this attribute which has really characterised and shaped her career.
Over the years, she headed the legal departments of several corporate services firms. Due to her skillset, she was also entrusted with managing and overseeing operations and human resources, where she gained technical and practical experience in various corporate, commercial and employment matters.
Her practical hands-on experience and insight perfectly complement Mariella’s technical knowledge of employment law, thus placing her in an ideal position to understand and advise employers and employees alike on various matters that may arise at the workplace.
Mariella is passionate about employment law matters and provides her clients with the highest-quality legal service to achieve the best possible outcome and resolve any employment law related issues and concerns.
Bradley graduated Doctor of Laws from the University of Malta in 2005 and was admitted to the Bar in Malta in 2006. He advises clients on various corporate, commercial, employment and regulatory matters, with particular focus on company and financial services law.
He has assisted clients in various corporate and commercial matters by providing company law advice and assisting in the implementation of corporate finance, restructuring, mergers and acquisitions and similar transactions.
Bradley has also advised and assisted investment funds, fund managers and other investment services providers, banks and financial institutions, on various legal and regulatory matters relating to the setting up, authorisation and ongoing conduct of their activities in Malta.
His practice also covers general employment law matters. Bradley’s experience in company and financial services law enables him to focus on various corporate and regulatory aspects of employment relationships. In particular, he advises organisations on the implementation of employee share option and participation schemes, the implications of business transfers on employment relationships, as well as relations with senior employees.
Karl graduated Doctor of Laws from the University of Malta in 2005 and was admitted to the Bar in Malta in 2006.
Karl has gained considerable expertise in technology law and regularly assists clients in relation to intellectual property issues, commercial contracts and ways to ensure compliance with the General Data Protection Regulation (GDPR) and privacy laws. Whilst such matters used to be only given incidental importance when dealing with employment matters, they are now widely acknowledged to be vital in all employment relationships.
He is also regularly engaged by C-level executives to assist in negotiating employment contracts and settlement agreements.
Karl advises across a multitude of industries including technology; marketing; adtech; financial services; gaming; esports; consumer products; and media and telecommunications.