Employment lawyer Jason Cowley of Witney-based Lee Chadwick & Co LLP provides an insight into how to think differently when dealing with the challenging business environment.

Credit crunch, redundancies, lay-offs; things we are all hearing about in these difficult times.

Of course, the idea of cutting back on staffing levels may be a decision you are currently grappling with, as the crunch starts to bite on business.

When faced with the ever-increasing and, frankly, confusing plethora of employment legislation, even the most astute of business people can be forgiven for finding it difficult to lay off anyone, or make them redundant.

These difficult choices need to be made as soon as possible to best equip your business to weather the economic storm ahead.

The fear of an employee bringing a claim in an employment tribunal or through the county courts, as a consequence of an unfair or wrongful dismissal, resonates with all business people who simply do not want to get embroiled in lengthy, potentially costly legal battles.

Today’s business leaders need a creative way to work through the potential difficulties.

There is a way forward, in the form of a compromise agreement. This is a formal document recognising that an employee’s employment has, or will, come to an end, and is designed to remove the threat of any court or tribunal proceedings against your company.

Furthermore, the agreement allows you the flexibility to pay your employee an amount of money as compensation for the loss of their employment.

The agreement also covers all aspects of employment law to include any and all, either existing or potential, claims against your business.

Once the employee has the agreement they will need to have independent legal advice, usually at the company’s cost, to inform them of the employment rights they are giving up.

The agreement provides a business with a method of bringing an employee’s employment to an end, providing them with a reasonable sum of money by way of compensation (subject to the employee receiving independent legal advice), without the threat of legal action.

As an incentive, the employee can be paid the compensation element, in most cases, without the deduction of tax or national insurance, providing a distinct advantage for the employee and smoothing over, what is for many, a difficult time.

This cost-effective creative solution allows you to do what you do best, run your business.

In these difficult times, why compromise your business with the risk of litigation when all you need is to be creative, use better solutions and secure your future.

For details: visit the website: www.lee-chadwick.co.uk