Settlement (compromise) agreements

Settlement (compromise) agreements

When the employment relationship breaks down, one solution is for the parties to enter into a settlement agreement. This is a legally binding agreement whereby the employer usually agrees to pay the employee a lump sum in return for the employee agreeing to waive their rights to pursue a legal claim.

Our employment team is very experienced at taking on settlement agreements and act for employees at all levels. We pride ourselves in explaining any technicalities in plain English and can advise you of the various options available to you.

We will be able to advise you on:

  • Whether the situation gives rise to any claims against the employer, and whether the settlement agreement provides for appropriate compensation
  • What claims you are promising to waive
  • If you are to be bound in the future by any restrictions in terms of restraint of trade obligations
  • What you are and are not permitted to disclose about the settlement agreement to other people

Your employer will usually (but does not have to) provide a contribution towards your legal fees and in the majority of cases where the agreement is not contested this will be sufficient to cover the whole bill. For the avoidance of doubt, although they may be paying our invoice, the employer is not connected with us and we are acting solely in your best interests.

We understand that your settlement agreement is important to you and will aim to take as much of the stress away as possible by negotiating with your employer on your behalf where necessary.  Ultimately, our aim is to ensure that you receive the best outcome possible.