Employment Solicitors

Settlement Agreements

What are settlement agreements and how do they work?

A Settlement Agreement (previously called a Compromise Agreement) is a document an employer may ask a departing employee to sign, under which they will give up their rights to bring certain claims against it in relation to their employment or its termination. 

What do you do if you are given a Settlement Agreement to sign by your employer?

How do you make sure you are being treated properly and you are getting an appropriate deal?

As an employer, how and when do you use a Settlement Agreement to terminate the employment of one of your staff?

Our team of specialist employment solicitors regularly advise both employees and employers on these issues, and understand how to deal with the various issues our clients encounter.

Please contact one of the team for more information or to discuss your requirements.

The team is incredibly user friendly, pragmatic and supportive in its approach

Chambers and Partners

Settlement Agreements

Below are some resources to help you understand more about Settlement Agreements and how to do deal with them. Please contact a member of our team if you would like any further information

What is a Settlement Agreement ?

A settlement agreement is a written agreement in which an employee or ex-employee agrees not to make a claim against their employer, usually in return for a financial settlement. They are typically used to resolve disputes, or at the termination of employment to head off any subsequent claims against the employer.

Because a settlement agreement means that you are waiving your statutory rights, such as the right to claim unfair dismissal or discrimination, you are required to seek legal advice on its contents. Usually your employer will contribute towards any legal fees you incur in seeking such advice.

We will advise you on the terms of the agreement to ensure that it is drafted in your best interests, including whether you are receiving your full entitlement to notice pay and other final payments and benefits. We will also assess the merits and potential award of any potential tribunal claims to establish whether a settlement agreement really is your best option. We can also be involved in negotiations to increase the financial offer or simply advise you on the terms before you sign the agreement.

Settlement agreements are a commonly used tool and we have prepared a brief paper to answer the questions we most frequently encounter.

Settlement Agreement Q&A

We recently prepared a blog post which goes through some of the questions we are regularly asked.

Settlement Agreement Top Tips for individuals

Our team have prepared a useful guide with some top tips on what you should do if your employer hands you a settlement agreement

Settlement Agreement Top Tips for businesses

Our team have prepared a useful guide with some top tips on how and when you as an employer can or should use settlement agreements

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