Employment Settlement Agreements

Our Employment solicitors advise both employers and employees in relation to the provision of Settlement Agreements within employment.

How we can help

A Settlement Agreement is a legally binding contract made between an employer and employee, either towards the end or just after employment has terminated. They can also be used to resolve an ongoing workplace dispute, for example, a dispute over redundancy pay.

Settlement Agreements under the Employment Rights Act are useful documents for both employers and employees as they make it possible for employment disputes to come to an end amicably.

Our Employment lawyers regularly draft Settlement Agreements for employers ranging from small businesses to multinational companies dealing with junior employees and senior executives.

Typically, when an Employment Settlement Agreement is entered into, the employee will receive a sum of money for compensation for loss of office or a gift on termination (which may comprise of notice pay, holiday pay and perhaps a tax-free ex gratia payment) and a reference. Meanwhile the employer will, through the Settlement Agreement, ensure that it does not have to face any claims from the employee and that the employee will agree to such terms so as to protect the employer after the employment is at an end regarding company clients and other company property.

In terms of advising an employee, our Employment lawyers will ensure that the employee fully understands their employment rights that they are compromising and whether the compensation payment proposed will be sufficient for such a compromise. If the compensation is insufficient we will negotiate directly with the employer to achieve the best result.

We can also advise on share sales and options to purchase as well as the tax implications of the contractual and compensatory payments. We will make the parties fully aware of the ongoing obligations after execution of the agreement, for example restrictions on future employment and confidentiality provisions.

Our Employment Team

Director, Head of Department & Solicitor
Freddie graduated from Newcastle University in 1992 with an Honours Degree in Combined Studies, focusing on history and politics…
Director & Solicitor
Caroline graduated from the University of the West of England in 2001 with an LLB (Honours) Law Degree…
Trainee Solicitor (SQE)
Holly graduated from Bournemouth University in 2020 with a BSc (Honours) in Forensic Biology, before completing her Graduate Diploma in Law at the University of Law Guildford in 2021…
Trainee Solicitor
Lucy graduated from Reading University in 2019 with a degree in Philosophy and Politics…
Jenny graduated from Bournemouth University in 2021 with an LLB (Honours) Law Degree…

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