Your employer may offer you a Settlement Agreement (formerly known as a ‘compromise agreement’) in a number of different situations. For example, when there is a dispute between you, they are going through a redundancy situation or if you mutually agree to end your employment.
If you are offered a Settlement Agreement, you must get expert advice before signing. This is required for the agreement to be legal but, crucially, also helps to ensure you are getting the best possible terms.
At Clifton Ingram, our experienced Settlement Agreement solicitors can provide immediate, clear advice on the terms you have been offered. We will let you know if we believe they are fair or where you may be entitled to more. Where required, we can negotiate with your employer to secure an enhanced settlement.
When facing such a stressful situation, it is essential to have the right people in your corner. Our team are here to support you, not just legally but on a personal level, helping to make this tough situation easier for you.
“Responsive and managed a sensitive situation very effectively and in a timely manner”
Legal 500
Why trust Clifton Ingram for Settlement Agreements advice for employees?
- One of the leading Employment Law teams in the Thames Valley and M3 Corridor
- Ranked in respected client guide The Legal 500 for Employment Law, recognising us as some of the best employment law solicitors in the region
- Head of Employment Alison Gair and Partner Robert Cherry are members of the respected Employment Lawyers Association (ELA)
- Decades of experience supporting employees with settlement agreements
- The expertise to get you the best possible settlement, no matter the situation
- Strong skills in constructive negotiation and alternative dispute resolution, giving you the best chance of a positive outcome at an early stage
- Ready to take immediate, firm action to protect your interests when needed
- A service tailored to your needs
“The team was very knowledgeable and gave good advice.”
Legal 500
Learn more about Settlement Agreements:
- What is a Settlement Agreement?
- When might a Settlement Agreement be used?
- How much can you get with a Settlement Agreement?
- How can a solicitor help with a Settlement Agreement?
- Should you use the solicitor recommended by your employer?
- What should be included in a Settlement Agreement?
- Is a settlement agreement legally binding?
Contact our Settlement Agreement solicitors in Farnham, Reading & Wokingham
Our proactive and down-to-earth team of highly experienced employment lawyers work from offices in Farnham, Reading and Wokingham. We provide employment law support for clients from all over Berkshire, as well as Oxfordshire, Buckinghamshire, Surrey and further afield.
Speak to one of our settlement agreement solicitors for employees today by calling 0118 978 0099 or using the contact form at the bottom of the page and we will respond quickly.
An employee’s guide to Settlement Agreements
What is a Settlement Agreement?
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.
When might a Settlement Agreement be used?
There are many different scenarios where you might seek a Settlement Agreement with your employer.
In some situations, the agreement is preceded by a claim that you have raised against your employer. For instance, if you’ve accused your employer of unfair dismissal and they are attempting to settle the claim to avoid an employment tribunal. Using a Settlement Agreement, the claim can be resolved in a way both parties agree on.
If an employer is unsatisfied with your performance or you have committed gross misconduct, they may use a Settlement Agreement to end your employment. Under these conditions, the Settlement Agreement replaces the standard termination procedures, which can offer benefits for both parties.
In redundancy, Settlement Agreements are commonly used by employers to avoid the risk of an employee bringing a claim, for example, for unfair dismissal.
How much can you get with a Settlement Agreement?
You can normally receive up to £30,000 as a tax free compensation payment 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.
How can a solicitor help with a 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 of 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 the Settlement Agreement and the level of compensation you are receiving.
Should you use the solicitor recommended by your employer?
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.
Advantages of choosing your own solicitor include giving you confidence that they are truly independent and have your best interests at heart, as well as making sure you pick the very best Settlement Agreement solicitors you can.
What should be included in a Settlement Agreement?
A settlement agreement might include the following:
Termination payment
When your employer offers you a Settlement Agreement, in addition to a compensation payment, it should include any accrued pay and negotiated benefits. For instance, holiday pay accrued before your termination and the salary that you are entitled to. If appropriate, the termination payment should also include commission or bonuses owed.
Legal expenses
When pursuing a settlement agreement, you’ll need advice from an employment solicitor. Your employer should include a contribution towards legal expenses to help with this.
Confidentiality or non-disclosure clause
Employers usually include a confidentiality or non-disclosure clause as part of a Settlement Agreement. In most cases, the employer will want to ensure that the agreement details are private for the mutual benefit of both parties.
Agreement breaches
Settlement Agreements are legally binding, if you or your employer breach the terms, there will be legal implications and consequences. Details of the legal implications will be included as part of the agreement.
Employee reference
As part of a settlement, an employer might agree to provide a reference, though they are not legally obliged to do so. If you can negotiate a reference with your employer, this will help you when pursuing future employment opportunities.
Is a Settlement Agreement legally binding?
Yes, a Settlement Agreement is legally binding. It’s a contract made between employee and employer, so both parties are expected to adhere to the terms. However, there are strict requirements for Settlement Agreements in law in order for them to be legally enforceable.
A legally binding Settlement Agreement must meet the following conditions:
- The agreement must relate to a specific complaint or proceedings
- The Settlement Agreement must be set out in writing
- The employee needs to have first gained advice from an appropriate independent adviser, such as an employment solicitor
- The independent adviser needs to be referenced in the agreement
- The employee's adviser must have professional indemnity insurance
- The agreement should confirm that the correct statutory conditions have been followed
Failure to meet all of these requirements would mean that you do not have a legal Settlement Agreement.
Our Settlement Agreement fees
We can generally review Settlement Agreements and advise you upon their terms and effect on a fixed fee basis. Your employer is required to make a contribution to the cost of having a Settlement Agreement reviewed, which should cover the cost of a review in most cases.
If you require additional support, such as negotiating a Settlement Agreement, this may be covered by the funding provided by your employer. If this is not the case, we offer flexible fee structures, which we will be happy to discuss when you contact us.
Contact our Settlement Agreement Solicitors in Farnham, Reading & Wokingham
Our proactive and down-to-earth team of highly experienced employment lawyers work from offices in Farnham, Reading and Wokingham. We provide employment law support for clients from all over Berkshire, as well as Oxfordshire, Buckinghamshire, Surrey and further afield.
Speak to one of our Settlement Agreement solicitors for employees today by calling 0118 978 0099 or using the contact form at the bottom of the page and we will respond quickly.