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Settlement Agreements

A settlement agreement is a contract where an employee agrees to give up any employment claims against their employer, usually in exchange for compensation. Employers often use these agreements to lay out the terms under which an employee will leave the company.

Why Do Employers Use Settlement Agreements?

Using a settlement agreement can often avoid formal disciplinary or redundancy procedures. This can save time and money, and also remove the risk of claims for unfair dismissal.

To prevent employment law claims, an agreement has to meet certain requirements. It has to be in writing and the employee must get independent legal advice on what the agreement means from a qualifying legal adviser.

How Can We Help you?

Your employer will usually offer to draft a settlement agreement. We can help you negotiate to ensure the terms are fair. This could include:

•  Compensation or redundancy payments

•  Confidentiality

•  An obligation not to make negative comments about you

•  An agreed reference

How much are our fees?

Depending on how complex the agreement is and how much work we have to do on your behalf our charges range from £250 to £500 plus VAT. If you have been offered a settlement agreement your employer will usually contribute towards your legal fees and this contribution may cover the total cost of obtaining our advice.





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