Settlement agreements

Settlement agreements

Do you have an employee who is being made redundant or who has agreed to leave your employment in exchange for a lump sum payment?

Sometimes employment relationships simply do not work out and as busy employers you may not have the time to follow the correct regulatory processes.

A Settlement Agreement is a contract that an employer and employee sign to record the terms of the employee’s departure.  Your employee signs away their right to bring certain employment tribunal claims against you in exchange for an agreed payment from you.  You can also agree other things, such as the content of any job reference you will give to potential future employers and confidentiality restrictions.

For a Settlement Agreement to be valid it will need to contain certain terms and the employee must take legal advice to ensure that they understand what they are signing. You would normally contribute towards the legal fees for this advice. You are also expected to give the employee a minimum of 10 days to consider the terms of the agreement.

We can guide you through the process or negotiate the terms on your behalf with your employee or direct with their lawyer. We can also prepare the relevant documentation which will reflect the terms of the settlement and how the relationship is to end.

If you would like to talk in confidence to one of our experienced solicitors or have any questions then please call us on 01268 240000 or email us at

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