Being offered a settlement agreement can be a worrying and uncertain time, especially if your employment is changing unexpectedly. With our expert advice, you can understand all your options and whether the deal is fair.
Find out where you stand with your settlement agreement and discuss your situation in confidence – call 0191 5666 500 or get in touch for FREE no-obligation advice.
Negotiating a settlement agreement can feel overwhelming, but you don’t have to deal with it alone.
A legally-binding contract between you and your employer, a settlement agreement usually details the agreed terms of your departure and is often used to prevent future employment claims.
Before signing, it is vital to understand exactly what you are agreeing to, whether the terms are fair and what rights you may be giving up. Our experienced solicitors provide clear and independent advice, so you can feel confident about your whether to accept.
We know this process can feel overwhelming, but we adopt a personal and supportive approach so you can make informed decisions with confidence. We carefully review your agreement, explain all your options and, if appropriate, can help negotiate improved terms to protect your future.
Most settlement agreements can be reviewed quickly, often within the same day, and your employer will usually contribute towards the cost of your legal advice.
Our settlement agreement service includes:
- Review agreement and explain clause in clear & understandable terms.
- Assess if proposed compensation is reasonable based on circumstances.
- Identify potential employment claims – unfair dismissal or discrimination.
- Manage important deadlines so you have time to consider your position.
- Advise you on all your options & help you make a confident decision.
Why choose us for your Settlement Agreement?
Feel reassured. Protect your position. Achieve the best possible outcome.
Receiving a settlement agreement can be a significant moment in your career, often arriving during a period of uncertainty or change.
To help you understand your options and make an informed decision with confidence, our specialist employment solicitors provide clear and practical advice.
We take the time to understand your circumstances, explain your rights in plain English and ensure the agreement properly reflects your interests.
Employment law expertise
Experienced solicitor Tom Behan, who leads Dispute Resolution team, has extensive experience advising on settlement agreements, employment issues, workplace disputes and exit arrangements.
Advice tailored to you
We consider your role, length of service, circumstances and future plans to provide advice that’s specific to your needs.
Clear about costs
To review and negotiate a settlement agreement, our fee is £500 + VAT and, in most cases, the employer will pay all of the cost of obtaining legal advice required.
Put your interests first
We act solely for you, ensuring you fully understand the implications of the agreement and whether the terms offered are fair.
Support with negotiation
Where appropriate, we can advise on negotiating improved terms, including compensation, references, confidentiality provisions and other benefits.
FAQs
What is a settlement agreement?
A settlement agreement is a legally binding contract between an employer and employee that sets out agreed terms to resolve an employment matter. It may include a financial payment, confidentiality obligations and restrictions on bringing certain claims against the employer. It must meet specific legal requirements to be enforceable.
When might I need a settlement agreement?
A settlement agreement may be appropriate when an employer and employee want to resolve a workplace dispute or agree an orderly end to employment. Common situations include redundancy, performance issues, grievances, disputes or potential tribunal claims where both sides prefer a negotiated outcome rather than formal proceedings.
Can a Settlement Agreement be negotiated?
Yes, a settlement agreement can be negotiated before it is signed. Employees can seek changes to the proposed terms – including compensation, references, confidentiality clauses or other conditions. Negotiations allow both parties to reach an agreement that reflects their interests and avoids the uncertainty and expense of a formal dispute.
What are the benefits of a settlement agreement?
Settlement agreements can provide certainty for both the employer and employee by agreeing the terms of departure or resolving disputes. They may offer financial compensation, a reference, confidentiality and a quicker resolution compared with tribunal proceedings. For employees, they can provide a clearer exit arrangement and reduce legal risks.
How long does a settlement agreement take?
The timescale for a settlement agreement varies depending on complexity and negotiations. Some agreements are completed within days or weeks, while others take longer if terms require detailed discussion or amendments. The process usually involves reviewing the offer, obtaining legal advice and agreeing final wording before signing the document.
Are settlement agreements legally binding?
Yes – a settlement agreement can be legally binding if it meets the required legal conditions. It must be written and the employee must receive advice from an appropriate independent adviser before signing. Once validly completed, it normally prevents claims covered by the agreement from being pursued through legal proceedings.
Do I have to accept a Settlement Agreement?
No – accepting a settlement agreement is voluntary. An employer cannot force an employee to sign one, and an employee is entitled to consider the proposal carefully. The terms can be rejected or negotiated, although refusing an agreement may mean the underlying workplace issue continues or follows another process.
What will it cost and who pays for it?
Employees must obtain independent legal advice before signing a settlement agreement. In most cases, the employer usually pays the entire bill or contributes most towards the cost of this advice, although the amount varies and should be agreed. Any additional advice or negotiation support may involve further costs depending on the solicitor and the circumstances involved.
How long do I have to decide?
Employees should be given a reasonable period to consider a settlement agreement and obtain advice. ACAS recommends allowing at least 10 calendar days for consideration of a formal written offer, although the appropriate timeframe depends on the circumstances and complexity of the agreement.
Is settlement pay taxed?
Tax treatment depends on what payments are included within the settlement agreement. Some elements, such as salary, holiday pay or notice payments are usually taxable. Certain termination payments may qualify for tax relief up to the relevant limits, but each settlement should be reviewed individually.
