Settlement Agreements

If you have been offered a settlement agreement by your employer, our specialist team of solicitors are available to assist you and advice on the terms of your agreement.
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Settlement Agreements

A settlement agreement is a document provided to an employee by their employer with the intention of terminating employment and settling any potential claims the employee may have arising out of their employment or its termination. The agreement generally includes a Termination Payment as compensation for the waiver of claims.

Our team of specialist team of employment solicitors are able to provide you with advice on the terms and effect of the settlement agreement as well as the offer which has been made to you. In most cases, the settlement agreement will include a legal fee contribution which will cover the review and advice on the terms of the agreement.

If you have a dispute with your employer, we can also look to assist you with negotiating a favourable exit and requesting a settlement agreement.

Our services can include:

  • Reviewing and advising upon the terms and effect of your settlement agreement.
  • Updating and amending clauses in the settlement agreement where appropriate.
  • Advising on your position and any potential employment claims
  • Requesting a settlement agreement if you do not already have one
  • Negotiating on terms of settlement agreements.

Key contact

Alistair McArthur PNG
Alistair McArthur
Partner, Head of Employment

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Frequently Asked Questions

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

Yes. In order for the settlement agreement to be binding, there are certain legal formalities to comply with. One of these is that you need to take independent legal advice on the terms and effect of the settlement agreement.

Your employer should pay a contribution towards your legal fees, which will be stipulated in your settlement agreement. The contribution should be at a level where it covers all or most of your legal fees, but this will depend on each particular case, and it is important to note that this is only a contribution. Ultimately, you will be responsible for any shortfall; however, as part of any negotiations, you can ask for the contribution to be increased.

There will be a clause in your settlement agreement stating that you must keep the terms and circumstances surrounding your departure and the settlement agreement confidential. This means you cannot disclose this information to anyone, save for disclosure to HMRC as required by law, your professional legal advisers and usually your spouse or civil partner.

Generally speaking, yes; however, the grounds for doing so will generally be dependent on each individual situation, and our specialised lawyers will be able to advise you on this.

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