Employment Law
Pre-Trial Settlement of a Dispute with a Former Employee
The entrepreneur was advised on a conflict situation involving a former contractor whose engagement had not been formally documented.
Solution
The analysis identified the risks of the relationship being classified as an employment relationship, as well as potential financial consequences, including recovery of average wages for forced absence, compensation for unused leave, additional assessments of personal income tax and social security contributions, fines, and other liabilities.
To mitigate these risks, an out-of-court resolution of the dispute was recommended. Negotiations were conducted with the former employee, and the execution of an appropriate settlement agreement was secured.
Result
As a result, the dispute was successfully resolved at the pre-trial stage, enabling the client to avoid litigation and the related costs and risks.