Receiving a settlement agreement from your employer can be an overwhelming time and deciding what to do next is rarely easy.

A settlement agreement is a legally binding document used by employers to set out certain terms and conditions relating to the termination of your employment. You do not have to sign a settlement agreement, and you should only enter into one if you are completely happy with its terms.

When you sign a settlement agreement you are agreeing not to bring any legal claims against your employer, most notably a claim for unfair dismissal. There are a few exceptions where you are still able to bring a claim, but the intention of the settlement agreement is to give your employer peace of mind that you will not bring a claim against them after you have left.

So what’s in it for you? Usually you will receive a payment from your employer in return for agreeing not to enforce your rights. This may be tax free up to certain limits.

By law, you cannot sign a settlement agreement without first getting advice from one of a range of stated advisors, including solicitors. It is usual for the cost of obtaining such advice to be covered by your employer as part of the deal.

We can provide that advice and help you to understand your settlement agreement.

How we can help

If you have been presented with a settlement agreement by your employer and would like our assistance in understanding its contents and effect, or to help you with negotiations with your employer, please contact our Employment team. We offer an initial free no obligation chat for you to be able to share your circumstances and discuss how we can help.

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We are recognised as having an effective and experienced employment practice in The Legal 500 UK 2024.

Excellent advice regarding my delayed acceptance of a termination of employment settlement offer. Very helpful, good communication and very informative – Thank you.
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