Settlement Agreements

Settlement agreements, previously known as compromise agreements, are legally binding contracts that are often used to end a period of employment.

The terms of the settlement agreement can be made on a confidential basis, meaning it cannot be used in an unfair dismissal claim. However, there are exceptions to this, for example where an unfair dismissal is due to whistleblowing or union membership for example.

If you have been offered a settlement agreement, your employer will generally agree to pay the legal fees involved in taking advice on the agreement.

They can be offered at any time during your employment but you do not have to accept them; you enter into the contract voluntarily.

Neither do you have to accept the terms proposed in the agreement; you can enter into negotiations with your employer.

For the settlement agreement to be legally binding, it must be in writing and clearly state all the issues that it covers.

It will usually be proposed by your employer before undertaking any proceedings and will generally include some level of payment and a reference.

Be certain that you fully agree with the contents of the settlement agreement before you sign. Once you have signed the agreement you are legally bound and you will have waived your rights to take the claim to a court or an employment tribunal.

How we can help

Our expert team of specialist employment solicitors can help you in a number of ways:

  • We can simply provide advice on your settlement agreement, explaining the terms and what it means to you and what options are open to you
  • We can review your agreement and negotiate with your employer if necessary, making sure that the terms of the agreement are in your best interests and meet your particular circumstances and then help you finalise the agreement with your employer
  • If you don’t think you are getting enough compensation as part of your agreement, we can review this for you

If you would like more information or just want a confidential, no obligation chat about your options, contact our highly experienced team today.

Get in touch today