Settlement Agreements

Our specialist Employment Lawyers within our Employment Department can provide comprehensive guidance in relation to the legal requirements and commercial considerations where an employer wishes to make a settlement offer to an employee.
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Settlement Agreements

Our lawyers within in the Employment Department have extensive expertise and experience which allows us to provide our clients with the most up to date advice and practical solutions whilst negotiating commercially considered and pragmatic settlements. Our range of services includes:

  • Drafting and advising on the terms of settlement agreements;
  • Advising on tailored commercial settlement terms and figures;
  • Drafting and negotiating bespoke amendments tailored to specific client needs and requests; and
  • Identifying and valuing potential claims arising out of the circumstances leading up to the termination of employment and assisting to reduce exposure.

Key contact

Darren-Smith
Darren Smith
Partner

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Alistair McArthur PNG
Alistair McArthur
Partner, Head of Employment
Darren-Smith
Darren Smith
Partner
Matt Jenkin PNG
Matt Jenkin
Partner
Hannah King PNG
Hannah King
Legal Director
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Alex Harper
Senior Solicitor
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Samuel Gray
Senior Solicitor
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Tom Hyatt
Senior Solicitor
Cassie Blackledge PNG
Cassie Blackledge
Solicitor
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Isabella Milnes-James
Solicitor
Jo Boxhall PNG
Jo Boxhall
Solicitor
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Maryam Nackvi
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Victoria Wootton
Solicitor
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Katherine Bridge
Solicitor

Frequently Asked Questions

Find answers to your most pressing questions about our services and processes.

A settlement agreement, previously known as a compromise agreement, is a legally binding contract between an employer and an employee that typically brings the employment relationship to an end or resolves a dispute. It outlines the terms and conditions agreed upon by both parties, often including financial compensation and other provisions.

Employers may consider offering a settlement agreement in situations where they wish to resolve a workplace dispute, avoid potential employment tribunal claims, or bring an end to the employment relationship on agreed terms. It can be an effective way to mutually part ways and safeguard against potential legal action.

A settlement agreement should include details such as the termination date, the amount of any financial compensation being offered, any post-employment restrictions or obligations, confidentiality clauses, and a clear statement of the claims being settled.

Yes, it is a legal requirement for the employee to receive independent legal advice from a qualified solicitor before signing the settlement agreement. This ensures that the employee fully understands the terms and consequences of the agreement. As such it is usual practice for an employer to make a contribution towards the employee’s legal costs.

If a settlement agreement is not drafted properly or the employee’s rights are not protected, there is a risk that the agreement may not be legally binding. This could lead to potential claims or disputes resurfacing, resulting in additional costs and legal complications.

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