Settlement Agreements

If you are leaving your job (e.g. because of redundancy), or you have an ongoing dispute with your employer (e.g. because of unfair treatment) you may decide to accept a settlement agreement.

A settlement agreement is a legally binding agreement between employer and employee in which the employee agrees to waive their right to bring certain legal claims against the employer. Often, in exchange for this, the employer will agree to pay the employee a sum of compensation or to provide other incentives.

A settlement agreement only becomes legally binding once you have received legal advice on its terms from an independent adviser (e.g. a solicitor). If you instruct a solicitor at an earlier stage, they can also assist you with negotiating the terms of the agreement and ensuring that you secure the right agreement for you.

Settlement agreements can  also be used where you have already issued a legal claim against your employer, and want to settle your Employment Tribunal claim. Contact our experts now.

How do I get legal assistance?

  • Contact our experts

If you want advice on the terms of your agreement and/or assistance with negotiating with your employer, we can help. Some or all of our fees may be covered by your employer as part of the agreement. We will be able to provide clear and upfront cost estimates with you to ensure that you remain in control of your costs at every stage.

  • Lawyers who can help

You will be allocated to the most appropriate lawyer for your matter, who will be able to advise you on the key terms of the agreement and ascertain what it is you are seeking.

  • Keep you informed

We will keep you updated and informed throughout settlement negotiations and, at conclusion, ensure that you are satisfied with the service and outcome.

What outcomes can I expect?

The terms negotiated through a settlement agreement may be more favourable compared to what you might be awarded by an Employment Tribunal, as a settlement agreement offers certainty in terms of the amount of compensation you will receive and you can determine what other terms are included.

We can negotiate with your employer to achieve the best package for you, both in terms of the compensation secured, as well as non-financial aspects of the agreement.

We can also assist you to achieve other outcomes

A favourable reference

if you are leaving an organisation, it is often a good idea to agree that a reference is provided as part of the agreement. Your employer does not have to provide one otherwise. We can help you to agree the wording and include this in the agreement.

An agreed announcement concerning your departure

This can protect your career going forward as it allows you to control what message your employer communicates to others about your departure.

Reaching a settlement agreement brings a swift resolution to any dispute and means that you do not have to go through the time consuming, stressful and costly process of bringing a claim to the Employment Tribunal.

Why come to Hodge Jones & Allen Solicitors?

Our team of specialist employment lawyers are experts in advising on and negotiating the terms of settlement agreements.

  • Highly experienced

We have successfully negotiated agreements for employees in a variety of sectors and roles, from junior employees to senior executives. We pride ourselves on achieving the best possible outcomes for our clients.

  • We will explain in plain English

Settlement agreements often contain many different clauses, which can seem overwhelming at first. We will help you to understand what each term means and the consequences it has for you.

  • Work within expected deadlines

We can assess the merit and worth of any potential claims you might have against your employer and negotiate a settlement that best reflects the value of the claims you are being asked to waive. We will also ensure that an agreement is reached within any expected deadlines.

Senior manager gets six figure exit package

We acted for a senior manager who was placed at risk of redundancy. Following this, his relationship with his employer broke down and he no longer felt welcomed at the firm. Our solicitors worked tirelessly to make sure the senior manager received the best outcome possible.

Outcome: We negotiated a six figure exit package.

Head of charity successfully secures a significant settlement

We acted for the head of a charity, who was forced to take sick leave due to work-related stress. Her employers threatened to dismiss her, alleging conduct issues against her. Or as an alternative, her employer, suggested she leave the organisation. We assisted her with raising a grievance and contesting the allegations against her.

Outcome: Secured a significant settlement

Frequently asked questions

Do I have to accept a settlement offer?

Settlement agreements are voluntary – you do not have to sign anything that you are not happy with.

What terms might be included in my settlement agreement?

Among others, settlement agreements will often include clauses dealing with:

  • The claims to be settled e.g. unfair dismissal; discrimination;
  • Details of what payments you will receive upon signing the agreement;
  • Confidentiality;
  • References

We can advise you on what these terms mean and how they affect your rights.

What happens if the terms of the agreement are breached?

If you breach the terms of the agreement, you may be liable to pay back any compensation paid to you by your employer.

If your employer breaches the agreement, e.g. by not paying you an agreed sum, you can seek a remedy for breach of contract.

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