Settlement Agreements - Employees

If you have received a Settlement Agreement from your employer, then our team of expert employment lawyers are here to help you.

Employers usually offer a Settlement Agreement to an employee when the employment relationship is coming to an end, or if there’s a dispute that they want to resolve.

What is a Settlement Agreement?

A Settlement Agreement is a contract between you and your employer. It often includes a termination or severance payment in exchange for your agreement not to bring any claims against your employer arising out of your employment.

How do Settlement Agreements work?

A Settlement Agreement must be in writing and include a few legally required clauses. In order for a Settlement Agreement to be legally binding, you must receive independent legal advice on its terms and the effect that those terms will have on your ability to bring claims against your employer - and that’s where we can help.

Do I have to sign a Settlement Agreement?

No. Your employer can’t force you to sign a Settlement Agreement. However, a Settlement Agreement can often be beneficial to employees as a quick and amicable way of bringing the employment relationship to an end on agreeable terms in return for a sum of money.

How can we help?

We explain the terms of the Settlement Agreement to you, so that you understand exactly what they mean. If we see any problems with the agreement or consider that the financial offer that your employer has made to you is not good enough, we can negotiate changes on your behalf, or advise you how to do so.

How much does it cost?

It is very common for your employer to contribute towards your legal fees as part of the Settlement Agreement terms. We will always try to work within this amount. If we think that our costs will be more than your employer’s contribution (for example because you want us to negotiate the financial package or the terms of the agreement on your behalf) then we will always discuss this with you before we do that work.  If there are errors in the drafting, we will also ask your employer to contribute to the cost of putting that right.

What next?

For more information on Settlement Agreements or for specialist employment law advice, please contact us at contact@duttongregory.co.uk or contact Mark Broad as head of our employment team.