Settlement Agreements

Have you been offered a settlement agreement?

Parrott & Coales’ specialist employment lawyers are experienced in reviewing and advising on settlement agreements.

It is sometimes the case that an employer would prefer to agree settlement terms with an employee, rather than risk the employee issuing Court or tribunal proceedings, either following the employee’s dismissal or in other circumstances. If so, it is likely that the employer will want the employee to enter into a formal Settlement Agreement, previously known as a ‘Compromise Agreement’.

It is a legal requirement that you obtain independent legal advice before signing a settlement agreement, failing to do so could result in the agreement being void and could affect your payment.

How they work

A Settlement Agreement is the only method by which an employee can validly give up their statutory employment rights. In order for the agreement to be valid, the employee must take legal advice on the terms and effect of the proposed agreement. Normally, therefore, the employer will agree to pay a contribution towards the employee’s legal costs for this advice.

What are the reasons for a settlement agreement?

There are a number of reasons for a business to offer a settlement agreement:

  • Redundancy following a business restructure
  • Mass redundancy due to business or site closure
  • Misconduct
  • Performance issues
  • Breakdown in relationship

Regardless of the reason for being offered a settlement agreement, Parrott & Coales can help by reviewing your agreement, ensuring that it covers what you require and advising on the next steps.

There may be tax implications on the payment you receive, therefore it is important to review you claim with a Solicitor.

Should we find that the terms of the settlement agreement proposed does not cover what is agreed or you feel that you are not in a position to accept the terms proposed, Parrott & Coales can negotiate with your employer on your behalf to facilitate reaching an appropriate agreement.

Get in touch

Our team of experienced employment lawyers can review your settlement agreement, ensuring you get the best possible outcome. Contact our Employment Law team today on 01296 318 500 or email