
A settlement agreement is a legally binding document between an employer and an employee used to resolve a workplace issue. Once both parties sign the agreement, the employee is unable to bring any employment-related claim arising out of their employment or its termination before the courts or employment tribunal.
Its benefit to the employee is that they should receive either compensation or other benefits in return for signing. It’s important to note that once signed, you would not be able to raise an employment claim at the employment tribunal for any potential grievance that you have with your employer.
Independent legal advice must be taken by the employee before the settlement agreement is signed. Without this, the agreement cannot be classed as a valid settlement agreement.
As a CLA Specialist Signatory, we can deal with your Settlement Agreement promptly.
As the employee, the cost of this advice is usually paid for by your Employer.
We aim to ensure that employees receive fair and proper compensation for signing the Settlement Agreement. Our settlement agreement solicitors can also negotiate an increase in the compensation offered or any other proposed settlement term if appropriate.
Settlement agreements (previously known as compromise agreements) are commonly used to bring an employment relationship to an end on agreed terms. Our specialist settlement agreement solicitors provide clear, practical advice on your rights, what the agreement means, and whether the terms being offered are fair.
Whether you have been offered an employment settlement agreement due to redundancy, workplace dispute, performance concerns or another employment issue, we ensure you fully understand the implications before signing. We can also act as your settlement agreement lawyer if negotiation is required, helping to secure improved financial terms, extended notice, or additional protections.
Because a settlement agreement waives your right to make future claims against your employer, UK law requires employees to receive independent legal advice for the document to be valid. Our settlement solicitors explain each clause in a clear, straightforward way so you know exactly what you are agreeing to, including compensation, confidentiality, references, restrictions, tax implications and more.
Employers usually contribute to, or cover, the legal costs of your advice, meaning you can receive expert guidance at no additional cost to you.