Settlement Agreements

We understand that considering a Settlement Agreement can be a daunting prospect. Our approachable and experienced solicitors will explain the details in a clear and concise manner, helping you to make informed decisions for your future.

What is a Settlement Agreement?

A Settlement Agreement, previously known as a Compromise Agreement, is a legally binding contract between an employer and an employee. It is commonly used to manage the termination of employment or to resolve workplace disputes.

How We Can Help

We offer expert, independent legal advice on Settlement Agreements. Our services include:

  • Reviewing and advising on the terms: We will go through each clause with you to ensure you fully understand the agreement and identify any concerns.
  • Negotiating terms: If the package offered is unsatisfactory, we can negotiate improvements on your behalf (additional legal fees may apply).
  • Ensuring compliance: The agreement must meet specific legal requirements under Section 203 of the Employment Rights Act 1996, including:
    • Being in writing
    • Relating to specific complaints
    • Confirming that independent legal advice has been provided by a qualified adviser
    • Stating that the conditions regulating settlement agreements have been satisfied

When are Settlement Agreements Used?

Settlement Agreements can be applied in various situations, including:

  • Resolving disputes between an employer and employee, such as disciplinary or grievance matters.
  • Offering an alternative to formal redundancy or performance processes.
  • Addressing situations where the employment relationship has broken down.

These agreements provide employees with compensation in return for waiving certain employment rights, such as the right to bring claims to an Employment Tribunal.

Speak to a lawyer today

On 0121 233 4333 or request a callback

What You Can Expect in a Settlement Agreement

In exchange for signing a Settlement Agreement, employees may receive:

  • Notice pay
  • Redundancy payments (if applicable)
  • Outstanding holiday pay
  • Bonus or other benefits
  • A tax-free ex gratia payment

Settlement Agreements often include confidentiality clauses and may also secure a reference from the employer.

How You Benefit

  • No obligation to sign: You are not required to accept a Settlement Agreement, and we can discuss alternative options.
  • Employer-paid legal advice: Employers typically contribute towards the cost of independent legal advice, but this is limited to advice on the agreement itself.
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Why Choose Us

By choosing our firm, you benefit from:

  • Expertise: Our team consists of experienced solicitors with over 15 years of specialist experience in employment law.
  • Reputation: We are a Legal 500 recommended employment team, recognised for our ability to achieve the best outcomes for our clients.
  • Tailored Solutions: We focus on your best interests, ensuring that the terms of your Settlement Agreement work for you.
  • Time-Sensitive Service: Settlement Agreements often have tight deadlines, and we are equipped to meet these efficiently.
  • Specialist Expertise: Extensive experience in Settlement Agreements and employment law.
  • Bespoke Support: A personalised approach to negotiating and reviewing your Settlement Agreement.
  • Recognised Excellence: As a Lexcel-accredited and SRA-authorised firm, you can trust in our legal expertise.
  • Proven Track Record: We have a history of securing the best possible outcomes for employees across various sectors.

We are committed to providing you with the best advice and support throughout the process, ensuring you feel confident in making the right decisions.

Meet the team

Associate Solicitor, Employment

Associate Solicitor, Employment

Partner, Employment

Partner, Business Immigration

Speak to a lawyer today

On 0121 233 4333 or contact us below.

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