What is a settlement agreement?

A settlement agreement is a legally binding contract between an employer and an employee, typically used to bring an employment relationship to an end.

Under the agreement, the employee receives a negotiated financial payment (often referred to as a termination or compensation sum) and in return agrees to waive certain statutory and contractual rights, including the right to bring employment tribunal claims against the employer.

Settlement agreements are commonly offered during redundancy processes, following a dispute, or where an employer wishes to part ways with an employee on agreed terms.

Expert guidance on settlement agreements helps you understand your rights and negotiate with confidence.

How we support you

Legal guidance you can rely on
Before signing a settlement agreement, the law requires you to obtain advice from an independent solicitor. We’ll examine the document in detail, talk you through the terms, and ensure you have a clear understanding of what you’re committing to.

Your personalised advice summary
You’ll receive a bespoke written overview that breaks down the agreement into plain, accessible language. This highlights the key points and puts you in a strong position to make a confident, informed decision.

Strengthening your settlement terms
Where an offer falls short of what we believe is appropriate, we will engage directly with your employer or their representatives to seek improved terms and a better overall outcome for you.

Rights you may be waiving: what you need to know

Signing a settlement agreement means giving up certain legal rights. We will explain each of these to you in detail, which may include:
  • The right to bring unfair dismissal or wrongful dismissal claims at an employment tribunal
  • Claims for discrimination, harassment, or victimisation under the Equality Act 2010
  • Outstanding pay claims, including unpaid wages, holiday pay, or bonuses
  • Claims arising from a TUPE transfer or redundancy situation
  • Whistleblowing and protected disclosure claims
  • Any personal injury claims known to you at the time of signing

How the process works

1. Share your documents with us
Start by sending us your settlement agreement, either electronically or by visiting us in person. We’ll also gather a brief overview of your employment and the situation leading to the agreement so we can guide you appropriately.

2. Assessment and negotiation (if required)
We will carry out a detailed assessment of the agreement. If the proposed compensation appears insufficient, we’ll enter into discussions with your employer or their legal team to pursue improved terms on your behalf.

3. Preparation of your advice document
After the terms are finalised, we will produce your tailored advice document. This will break down the agreement in clear, straightforward language, highlight the rights you may be relinquishing, and confirm that you have met the requirement to receive independent legal advice.

4. Finalising and signing
Once everything is in place, you can complete the agreement. You can choose the option that suits you best:

  • Attend our Victoria office to sign in person
  • Complete the process digitally using e-signature

Disclaimer: employment tribunal matters

Our employment law service is focused exclusively on settlement agreement advice and negotiation. If you decide not to accept your settlement agreement and wish to pursue a claim at an employment tribunal, this falls outside the scope of our practice and we are unable to assist with those proceedings. We would recommend seeking specialist employment tribunal representation in that event.

Need help with a settlement agreement

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