Settlement agreement - who signs first?

[TheTrunkinator]

I'm a manager attempting to negotiate out a member of my team. I'm not experienced in this, and although I've had access to a lawyer who has drafted the agreement, I've had to handle all the negotiations and I'm constantly terrified I'm about to trip up! I work for a tiny company so have been expected not to spend too much on legal.

We've reached the point of agreement on the terms of a settlement agreement, she (employee) has taken independent legal advice (which the company has paid for) and we're all ready to sign.

This might seem a silly question, but what's the process for signing? Do we as the company sign first, then send the signed version to the employee for her and her solicitors signature? Do we fill in the solicitor's details in the agreement or do they do that?
We would send via Docusign so logistically, I can't seem to figure it out.
We're so close and I really don't want to mess it up at the end, I'd be so grateful to a step by step process for signing from someone who knows what they're talking about!

I honestly don’t think it matters (I work in HR and have managed several of these). It’s not binding until it’s signed by everyone so don’t get caught up in that - sounds like you’ve done a great job up to this point so don’t stress about this bit. Maybe start with whichever signature appears first on the doc? And the employment lawyer should fill in their own details.

The employee does. It doesn't matter who completes the employee's advising solicitors details. There must be an adviser's certificate attached and signed.

Well done, you've done the hard bit! The rest is just paperwork and it doesn't really make a difference as long as both parties sign and both get a fully executed copy.

Get them/their solicitor to add their solicitors details and make sure you get the signed certificate in hand before paying anything out

Thanks all, really appreciate the responses!

We're just working on some agreed wording for a reference and then we should be ready to go today.

I'll send it across to my employee and ask her to liaise with her solicitor in terms of them both signing, then once she's returned it with the signed certificate included, I'll send it through Docusign for my CEO to sign...then we're done right?!

I'll be so glad when this is all over, I've found it super stressful!

Another question...Someone said today that we're legally obliged to pay an termination payment to make the agreement legally binding. Is that true or have I misunderstood?

What do you mean by pay a termination payment? Presumably the employee is receiving something under the agreement? Or is it just notice pay?

For a straightforward contract to be legally binding there must be "consideration" which basically means that both sides have to have given something under the agreement.

If concerned about lack of consideration you can usually enter into the agreement as a deed which has different signing requirements (although they are not massively onerous and can be set up in docusign).

Ah yes I think that's what they meant, a consideration payment - just been googling and that makes sense now.

The employee is receiving a payment under the terms of the agreement - an ex gratia payment the solicitor referred to it as, and it's tax free. Presuming we don't have to pay a consideration payment as well? Is that just in cases when you're not making any other extra payment? Also presuming the solicitor would have told me when she drafted the agreement if we did have to!

It's completely unreasonable that you are being left to navigate this on your own. Who owns the company? This is their responsibility to sort out - ideally by taking proper advice on how to manage the situation.

Yes if there is an ex gratia payment (and it’s genuinely ex gratia and not something like notice pay/ annual leave / bonus) then no need for additional consideration.