What is a settlement agreement?

A settlement agreement is an agreement under the Employment Rights Act 1996 where an employee gives up his statutory rights against an employer in return (usually) for a termination payment. In order to be valid, the employee must receive independent legal advice on the terms and effect of the agreement.

For employees, we advise on the terms and effect of the settlement agreement (sometimes referred to as a “severance agreement”, “compromise agreement” or “termination agreement”) and whether they are giving up realistic claims against their employer. We will give employment law advice on the redundancy or potential unfair dismissal claim and establish whether fair procedures have been followed. Usually the employer will pay the costs for the employee. We try and ensure that our service is swift, constructive and thorough and often for a fixed fee.

For employers we will draft the agreement and oversee its negotiation. We are willing to agree to agree fixed fee or capped fee legal advice in this regard.