I want to offer an employee money to leave. How do I have that conversation safely?

The answer Just Ask, HR gives

Detailed Dan — Structured and thorough — every step in order.

This is done every day, lawfully — through a settlement agreement reached via a properly conducted conversation. The mechanics matter enormously, so take them in order:

1. The legal cover for the conversation itself. Two overlapping shields:

• Section 111A ERA ("protected conversation"): lets you propose settlement even with no existing dispute, inadmissible in an ordinary unfair dismissal claim. Its limits: protection doesn't cover discrimination, whistleblowing or automatic unfair dismissal claims, and is lost through "improper behaviour" — undue pressure, threats, lies.
• "Without prejudice": only applies where a genuine dispute already exists. If none does, s.111A is your shield — use it deliberately.

2. Conducting the meeting. Neutral setting, no ambush: many employers open with "I'd like to have a conversation under section 111A — you're free to say no." Present it as an option alongside the alternative (the normal process continuing — there must genuinely be one), never as "sign or be sacked", which is textbook improper behaviour. ACAS guidance suggests allowing a companion. Give a written proposal and a minimum of 10 calendar days to consider it.

3. The agreement itself. Only valid if in writing, identifying the specific claims settled, and — critically — the employee has received independent legal advice from an adviser you'll typically fund (£350–£750 is the usual SME contribution). Standard package shape: notice (worked or paid in lieu), an ex-gratia sum (often 1–3 months' gross, more for seniority/risk), accrued holiday, an agreed reference, mutual confidentiality.

4. Have a Plan B. If they decline, you must be genuinely ready to run the fair process you mentioned — a settlement offer followed by a sham process is exactly what tribunals look for. The offer is a fork in the road, not the destination.