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The only way to cover-off any possibility of a tribunal claim being brought by a particular employee. Used predominantly in the event of employment disputes, but also advisable when any enhanced monies are being paid, they work by getting the employee to sign away their rights to bring a tribunal claim in return for a tax-free sum of money. In order for the document to be legally binding the employee must seek independent legal advice, so in sending the employee into the arms of a solicitor you do need to ensure that the sum of money being offered is more than they are likely to win if they were to pursue a claim, otherwise you could be giving them ideas!
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