Employment law

Settlement agreements

Formerly known as compromise agreements, settlement agreements are voluntary agreements that may help you to agree an exit from your employer and/or resolve a dispute amicably and on terms which are beneficial to you.

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Employment law solicitors

It's a legal requirement that you take independent legal advice on the terms and effects of the settlement agreement before signing. Talk to an expert today. Call us on 0800 780 2730 or contact us and we'll call you.

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What is a settlement agreement?

Formerly known as a compromise agreement, a settlement agreement is a legally binding contract made between employer and employee.

A settlement agreement is usually used in connection with ending employment on agreed terms. A settlement agreement could also be used where the employment relationship is ongoing, but both parties want to settle a dispute that has arisen between them.  You will almost certainly waive your right to bring any claims against your employer.

Properly drafted settlement agreements are legally binding, which is why the law says they are only valid if you have taken independent legal advice on the terms and effects of the settlement agreement before signing. In most cases, your employer will contribute towards your legal costs of receiving this advice.

If your employer has asked you to sign a settlement agreement, talk to one of our experienced employment solicitors today. They will be able to advise you on your rights and help establish whether or not the proposed settlement agreement is in your best interests. Call us on 0800 780 2730 or contact us and we'll call you.

What are the advantages of a settlement agreement?

In the majority of cases, a settlement agreement will hold advantages for you and your employer. After all, not many people really want to deal with the uncertainty, acrimony and publicity that employment tribunal cases sometimes involve. Settlement agreements - as long as they're drafted properly – constitute a swift and certain route to bring your dispute to a close. The employer receives the certainty that you can no longer take them to an employment tribunal and you'll receive a financial package without the costs or risks of litigation.

Just as importantly, your settlement agreement can be drafted to offer things that a tribunal is unable to order, such as agreed employment reference, an announcement to your colleagues or clients or outplacement support. If your employer has suggested a settlement agreement in order to end a dispute and/or your employment, speak to an experienced employment law solicitor, call us on 0800 780 2730 or contact us and we'll call you.

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