Settlement Agreements

Our specialist employment solicitors are experts on settlement agreements and can help you make an informed decision.

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Settlement Agreements

Comprehensive analysis and negotiation support for settlement agreements

Before you consider a settlement agreement ensure it’s in your best interests by consulting one of our legal experts.

Our specialist employment solicitors are experienced in this area of employment law and can help you make an informed decision.

We will thoroughly evaluate the settlement agreement, providing detailed written advice to give you a clear understanding of the terms and help you decide whether to accept it.

Should you choose negotiation, we will advocate on your behalf, working to secure favourable adjustments to the agreement’s terms and conditions.

To conduct the assessment, we will provide you with a fee quote which will be determined according to the agreement’s complexity and the need for additional negotiations.

Rest assured, we are committed to providing you with comprehensive support throughout the process, ensuring your interests are protected and your goals are achieved.

We would be pleased to discuss your situation further. Please contact a member of our employment team at St Albans, Harpenden or Luton.

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OUr Employment LAW team


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Frequently asked questions

What is a settlement agreement?

A settlement agreement, previously known as a compromise agreement, is a legally binding agreement between an employer and employee that usually involves the termination of employment. It typically outlines the terms of the termination, any financial compensation offered, and any post-employment obligations.

Do I have to sign a settlement agreement if my employer asks me to?

No, you do not have to sign a settlement agreement if you do not want to. However, if you refuse to sign, your employer may terminate your employment without any financial compensation or other benefits that may have been offered in the settlement agreement.

Why do I have to take legal advice?

The waiver of claims in the settlement agreement will only be legally binding where the employee has received independent legal advice on the terms and effect of the settlement agreement on their rights.  Your legal advisor will be asked to sign a certificate to confirm that you have received advice on the agreement.

What happens if I breach a settlement agreement?

If you breach a settlement agreement, your employer can take legal action against you.  It is important to carefully review and understand the terms of the settlement agreement before signing to avoid any potential breaches.

When are settlement agreements used?

Settlement agreements are often used by employers to terminate an employee’s contract of employment on mutually agreed terms.  This may be as part of a “without prejudice” discussion or protected conversation.  

Typically involving financial compensation, these agreements require the employee to waive any claims against the employer relating to their employment or its termination.  Additionally, they can also be used to resolve a disputes like discrimination and harassment between an employer and employee.

Can I negotiate the terms of a settlement agreement?

Yes, it is common for employees to seek to negotiate the payments offered under the agreement and the terms of the agreement.  Taylor Walton’s employment team have significant experience of assisting employees to negotiate these matters.  In particular we will consider with you whether the offer made to you under the agreement is fair and reasonable.

How much will I have to pay to receive advice on my settlement agreement?

This depends on the circumstances and how much negotiation is required.  Usually the employer will make a contribution to legal fees incurred by the employee, with a standard contribution ranging between £500 and £1000 plus VAT. 


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