Clifton Ingram

Settlement Agreements

You employer may offer you a Settlement Agreement (formally known as a Compromise Agreement) in a number of different situations. For example, when there is a dispute between you or they are going through a redundancy situation or if you mutually agree to end your employment.


A Settlement Agreement is a legally binding agreement. In return for receiving a settlement payment or enhanced redundancy payment from your employer, you agree to draw a line under your employment and any dispute surrounding it and not to bring a tribunal or court claim against them.

You can normally receive up to £30,000 tax free under a Settlement Agreement. You may also receive an agreed form of reference and it may be possible, for example, to negotiate for any insurances, such as private medical insurance, to remain in place for an extended period.

Your employer may provide you with a list of recommended solicitors but you are free to choose any solicitor you wish to advise you on the Settlement Agreement.

A Settlement Agreement is a powerful document and it is important that you fully understand its terms and particularly what you are giving up in return for the payment. We have many years experience in advising on all aspects of employment law including Settlement Agreements. We are able to advise you on the terms of the Settlement Agreement and whether you are being offered a suitable amount of compensation. We can also negotiate with your employer in order to ensure that you are happy with Settlement Agreement and the level of compensation you are receiving.

Main Contacts

Alison Gair
Head of Employment & Intellectual Property
Alison Gair

Head of Employment & Intellectual Property Alison is a Senior Associate and has extensive experience in advising both individuals and... read more »

Contact Alison Gair:
alisongair@cliftoningram.co.uk
Robert Cherry
Snr Associate Employment & Dispute Res
Robert Cherry

Senior Associate, Employment & Dispute Resolution Robert qualified as a solicitor in 1995 and is member of the Employment Lawyers... read more »

Contact Robert Cherry:
robertcherry@cliftoningram.co.uk

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