Settlement Agreements for Employees

A settlement agreement is a type of legal contract that helps to resolve disputes among parties by coming to a mutual agreement on the terms. The settlement agreement acts as a legally binding contract. Quite often a settlement agreement brings an employment contract to an end on agreed terms. If you have been offered a settlement agreement or would like to discuss the terms of one, our highly regarded and experienced employment solicitors can assist. We pride ourselves on helping you achieve the best possible settlement.

What Is a Settlement Agreement?

A settlement agreement prevents an employee from suing their employer, usually after receiving a sum of money.

Once a settlement agreement has been signed, the employee can no longer make a complaint about a breach of a legal provision about their employment to an employment tribunal claim.

We regularly advise clients from the public and private sector on settlement agreements.

In certain situations, a settlement agreement will be accompanied by a share purchase agreement which you may need advice on. We draw on expertise from across the firm to offer a comprehensive service, ensuring that we offer specialist advice at every stage and achieve a timely and efficient solution.

Why Do I Need To Receive Legal Advice Before I Sign a Settlement Agreement?

It is vital that you understand the legal issues and the value of any potential claims before you sign a settlement agreement. This is because after you have signed, you can no longer take any action on these. It is a legal requirement that you receive specialist legal advice before you sign a settlement agreement.

It is important for a solicitor to assist you in understanding a settlement agreement as they can be written in a very formal language and refer to legislation which many people are not familiar with. Our friendly and experienced employment solicitors can assist you by:

  • Advising on whether you have any claims that can be brought to an Employment Tribunal before you enter into the agreement
  • Advise you on whether the sum offered in the settlement agreement is reasonable in your circumstances
  • Explain the meaning of the agreement and its effect on you
  • Advise you on whether anything should be amended or changed
  • Negotiate on your behalf

What Are the Benefits of a Settlement Agreement?

The benefit of a settlement agreement to the employer is that you accept the agreement and cannot seek further compensation.

The benefit of a settlement agreement to you is that you avoid stressful and potentially expensive litigation and you receive a guaranteed sum of money as compensation in return for settling your claims.

How Much Will It Cost Me?

The cost of advice for a settlement agreement is usually covered by your employer.

Employment Law Testimonials

The team were both professional and friendly, at the same time as being super-efficient and on the ball from the outset. I instantly felt confident in that I had selected the right team to support me at what was an extremely stressful and emotional time for me. The speed at which the team responded to my initial query, to the first phone consultation and their ongoing support throughout my case, gave me absolute faith that I would get the support I needed and when I needed it.
Legal 500, 2022

I just wanted to say I would highly recommend and can't thank you enough. My first encounter was with Shaylie who was so lovely and explained the process involved with a redundancy settlement. I was really concerned as I had such a short deadline to meet, so I sent Shaylie the necessary documentation and she informed me her colleague, Lucy, would be in touch. I received an email from Lucy the same day, arranging a telephone appointment for the next day and I explained I had a newborn baby. Lucy was so accommodating and I was able to pick a time suitable for me and was told I didn't need to worry if I needed to cut the call short, she could always pick up later if my little one became unsettled. I was so grateful for this. Lucy was so lovely and friendly, and nothing was too much trouble. It was also just the little personal touches, she always remembered my little girls name and wished us well when it was all completed. Thank you for an amazing service.
Employment Client

I have been very pleased with your service and will from now on be using Spire for all my solicitor requirements. Thank you.
Employment Law Client