• What is a settlement agreement?

    Settlement Agreements (previously known as compromise agreements) are legally binding agreements between an employer and employee. The purpose of a settlement agreement is to allow the parties to agree a ‘clean break’. Once you sign the agreement you will not be able to bring the listed claims against your employer. Take a look at our tips on what to expect in a settlement agreement.

    Have you received a settlement agreement and want to know what to do next?

    Take a look at the short animation below:


    Why do I need legal advice?

    Settlement agreements are not legally enforceable unless they meet certain requirements – one being that the employee has received independent legal advice on the terms. This advice is most often provided by a solicitor, preferably an employment law specialist.

    Employees have to receive the advice before signing the agreement to ensure they understand the terms of the agreement and the effect this has on their ability to bring a claim against the employer.

    • What happens next?

      Once you have been provided with a draft settlement agreement, you will need to seek advice on the terms from an independent adviser. If you decide to sign the agreement once you have been advised about the content, then your solicitor will normally be asked to provide a certificate confirming advice has been given.

      If a settlement agreement is offered we have extensive experience of providing the required independent advice, particularly in relation to senior individuals, including Directors.

      We are able to explain the implications of settlement agreement terms including those relating to employee benefits entitlements, such as share options and retention plan entitlements. If you feel the offer is not in your best interests, Brachers can negotiate with your employer on your behalf and draft changes to the documentation to protect your interests.

      Documents we will need to see to be able to advise generally include:

      • the draft settlement agreement
      • your employment contract (if you have one)
      • background documents including documents relating to any benefits.

      Before you sign the agreement, it is important to ‘check the small print’ and make sure you understand what you will be paid and when. Always check holiday and notice pay calculations as it is surprisingly common for employers to get these calculations wrong. Also consider when your benefits will end and what property you need to return to your employer and when (it is a good idea to list this so that both parties are clear).

      Get in touch with our settlement agreement solicitors

      Our settlement agreement solicitors are based in Maidstone and Canterbury and are ready to help with any legal advice you may require so please get in touch today.

      If you need guidance about your options, speak to one of our friendly team on 01622 690691. When you are ready you can book a one-hour chargeable online appointment with one of our experienced lawyers. As mentioned above the chargeable fee is usually paid for in full or in part, by your employer.

Book an appointment 1 hour chargeable virtual consultation

If you have been given a settlement agreement by your employer, you are legally required to take advice on its terms. Advice meetings for standard agreements are charged at £500 plus VAT which is usually paid for in full or in part by your employer. Please review our terms and conditions for more information.

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  • They have a real client-focused ethos.

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  • Brachers have always given us very detailed advice. They offer us different solutions as well as the risk factors involved with each of them.

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