Settlement Agreement Experts
A settlement agreement is a voluntary arrangement between an employer and an employee, typically used to resolve a workplace dispute or bring employment to an agreed end. As independent legal advice is required before a settlement agreement can be signed, our experienced experts are here to review the terms and protect your interests before you proceed.
Settlement Agreement FAQs
What is a Settlement Agreement?
A settlement agreement is a legally binding document that brings an employment relationship or workplace dispute to a formal conclusion. In most cases, the employee agrees not to pursue certain legal claims against the employer in exchange for a financial payment and agreed terms.
For a settlement agreement to be valid, the employee must receive independent legal advice on its meaning and effect. Employers will usually contribute towards the cost of this advice. Before signing, it is essential to understand exactly what rights you are giving up and what you are receiving in return.
If you have been presented with a settlement agreement, our employment solicitors can provide prompt, clear advice on the terms and their implications. To speak with a specialist, call 0333 2422375 or contact us online.
For a settlement agreement to be valid, the employee must receive independent legal advice on its meaning and effect. Employers will usually contribute towards the cost of this advice. Before signing, it is essential to understand exactly what rights you are giving up and what you are receiving in return.
If you have been presented with a settlement agreement, our employment solicitors can provide prompt, clear advice on the terms and their implications. To speak with a specialist, call 0333 2422375 or contact us online.
Why Do Employers Use Settlement Agreement?
Settlement agreements provide certainty for both parties. Employers gain reassurance that no future claims will be brought, while employees receive clarity around financial compensation and other agreed terms, such as references.
They are often used to avoid prolonged disputes, protect reputations, and allow both sides to move forward without the time, cost, and stress of formal proceedings.
They are often used to avoid prolonged disputes, protect reputations, and allow both sides to move forward without the time, cost, and stress of formal proceedings.
When Might a Settlement Agreement be Offered?
Settlement agreements can arise in a variety of circumstances, but they are most commonly used where an employer and employee agree to end employment on mutually acceptable terms.
They may also be proposed to resolve an ongoing workplace dispute. Our employment lawyers regularly assist clients in navigating these situations, working efficiently and strategically to achieve fair and practical outcomes.
They may also be proposed to resolve an ongoing workplace dispute. Our employment lawyers regularly assist clients in navigating these situations, working efficiently and strategically to achieve fair and practical outcomes.
Can I Request a Settlement Agreement?
Although settlement agreements are typically proposed by employers, employees can also initiate confidential discussions about a potential settlement. This may follow the raising of a grievance or where the employment relationship has broken down.
In many cases, employers are open to resolving matters privately rather than allowing disputes to escalate to an employment tribunal. If you are considering approaching your employer, it is strongly advised to seek legal guidance beforehand to ensure discussions are protected and any proposal reflects your true position.
Our experts can advise on strategy, negotiation for increased settlement.
In many cases, employers are open to resolving matters privately rather than allowing disputes to escalate to an employment tribunal. If you are considering approaching your employer, it is strongly advised to seek legal guidance beforehand to ensure discussions are protected and any proposal reflects your true position.
Our experts can advise on strategy, negotiation for increased settlement.
What Can be Included in a Settlement Agreement?
Settlement agreements often cover more than financial compensation. Depending on the circumstances, terms may include:
- A reference for future employment, including agreed wording
- Payment of bonuses or outstanding entitlements
- Confidentiality provisions
- Clarification of what will be communicated internally or externally
When advising on settlement agreements, our employment specialists can also negotiate additional terms where appropriate. Independent legal advice ensures you fully understand your options and are not disadvantaged by the agreement.
Do I have to Agree to a Settlement Agreement?
Settlement agreements are entirely voluntary. You must be given a reasonable amount of time to consider the proposed terms, with ACAS recommending a minimum of 10 calendar days.
If, after taking legal advice, you are not satisfied with the offer, you are under no obligation to accept it. We will assist in securing improved terms where appropriate.
If, after taking legal advice, you are not satisfied with the offer, you are under no obligation to accept it. We will assist in securing improved terms where appropriate.
What Should You Ask for in a Settlement Agreement?
When reviewing a settlement agreement, it is important to assess whether the offer properly reflects your circumstances. Our employment solicitors will carefully review all aspects of the agreement to help secure the best possible outcome.
Key considerations often include:
Key considerations often include:
- Whether the financial settlement has been calculated correctly
- Whether a reference has been included
- The presence of any restrictive covenants
- Payment of outstanding bonuses or benefits
- The tax treatment of payments
We understand that settlement agreements can feel overwhelming. Our role is to guide you through the terms clearly and ensure you are fully informed before making any decision.