Settlement agreements deal with employer and employee disputes without going into trial or extending the trial if the lawsuit is already ongoing. An employment settlement agreement must undergo scrutiny in its draft and execution. When writing an employment settlement agreement, it is always critical to have a knowledgeable attorney with you or have them draft a suitable agreement for the case of an employee. The section below details helpful tips in creating an effective employment agreement. 1. Make the Necessary Preparations in Advance When developing a settlement agreement or building up the case for a trial, attorneys still need to develop trial timelines, case themes, settlement, and evidentiary checklists. Attorneys are also responsible for specifying unique issues and specific takeaways to aid employees in dealing with settlement conversations. Mediation sessions require the most preparation. The goal of mediation is to bring a resolution to the claims and secure results through a signed memorandum. In mediation meetings, the attorney must have a pre-drafted settlement agreement. 2. Differentiate Between Settlement Negotiations and Agreements A settlement agreement is a contract. As such, it must include necessary information, including offers, acceptances, mutual agreements on terms, and considerations. Exploring various settlement options allows the parties to distinguish between essential terms that require identification and communication before a binding offer. 3. Be Cautious of Boilerplate Clauses Most attorneys have a template or pre-draft of an agreement to help them communicate the most necessary information to their clients. Attorneys find the danger in drafting the agreement in assuming the usual provisions without analyzing, modifying, and appropriating sections under certain circumstances. Integration clauses are present in employment settlement agreements to avoid future misunderstandings and arguments when one party retains claims against the other. Some clients will not want this in their agreements. Writing the confidentiality or non-disparagement clauses is necessary from a defensive stance. There are instances that an organization distrusts their employees to keep things confidential, and writing the non-disparagement clause will bring more harm than good. Release clauses are also essential in any settlement agreement. It is necessary to identify all the claims that the client needs to release. Also, make sure that the client has the legal capacity to release claims about the issue. 4. Speak with Tax Counsels Settlement agreements deal with settlement payments that carry over tax consequences on both parties. Understand the consequences in advance to not make unnecessary commitments for the client. There are instances that a client cannot lawfully keep or regret in the long run. 5. Indicate Some Enforcement Provisions Despite having a settlement agreement, disputes can arise if there is poor drafting, bad faith, or buyer remorse. It is best to anticipate the possibility of these happening and the possible steps of resolving them. Guarantee there is an enforceable agreement to arbitrate these scenarios according to law. The agreement must come from the specific jurisdiction or venue of the document and specify whether the losing party shoulders the expenses and fees of its enforcement. 6. Schedule Essential Reviews with the Client An attorney must be responsible for sending the necessary documents to their clients. When sending the draft of the settlement agreement, make sure it is consistent with the attorney’s and client’s expectations and understanding. To make sure that a client understands the content of the settlement agreement, the best thing to do is to review its entirety in their presence, explaining each section. A client has already put in emotional and financial investments to the case, and as such, the attorney must put the best interest of the client first and ensure their effort is consistent with the client’s expectations.