We’ve had a rash of settlement agreements to draw up recently.
Usually we’re asked to do these because the business doesn’t want to go through a lengthy disciplinary process before possibly parting company.
However, the struggle is usually getting the business to understand that they are not just paying the employee their notice to go.
They have to pay them more than that (sometimes much more) as they’re actually paying them for giving up their right to sue the business.
And you have to pay tax and NI on notice periods, even under a settlement agreement.
The only way around this is if the employee agrees to resign with immediate effect, and then any payments are ex gratia and paid gross.