Settlement Agreement

Do you need advice on a settlement agreement?

Our expert settlement agreement solicitors can provide advice on settlement agreements wherever you are in the country, by telephone or email and often on the same day, and your employer will pay your legal costs.

Call us for settlement agreement advice

You can call us any time for urgent settlement agreement advice: 07736 809721

Or email us on phardy@birdandco.co.uk

The key issues an employee should consider before entering into a settlement agreement with an employer are set out below.

What is a settlement agreement?

A settlement agreement (formerly known as a compromise agreement) is a legally binding agreement between an employer and an employee under which the employee agrees to settle their potential employment claims and in return the employer will agree to pay financial compensation. Sometimes the agreement will include other things of benefit to the employee such as an agreed reference letter.

In what circumstances will a settlement agreement be appropriate?

An employee may have claims against an employer under both their contract of employment and under statute. These claims may arise on recruitment; during employment; or on termination of their employment.

In many cases, an employer may want to make a payment to an employee in return for an effective waiver of their potential claims. Employers can enter into an agreement with an employee to settle potential claims when they are still working for the business, but in most situations, their employment will have ended (or be about to end). Although it is usual for compromise or settlement agreements to be entered into where employment has terminated (or is about to terminate), it is possible to enter into one where employment is continuing. Unlike contractual claims, which can be waived by entering into a contractual waiver of such claims, statutory claims can only be waived in prescribed ways, one of which is by means of a compromise agreement.

What are the legal requirements for a valid settlement agreement?

To validly settle statutory employment claims, a settlement agreement must satisfy several conditions that must be met:

  • The agreement must be in writing.
  • The agreement must relate to a particular complaint or particular proceedings.
  • The employee must have received legal advice from a relevant independent adviser (for example , our qualified Settlement Agreement Solicitor Paul Hardy) on the terms and effect of the proposed agreement; and its effect on their ability to pursue any rights before an employment tribunal.
  • The independent adviser must have a current contract of insurance (or professional indemnity insurance) covering the risk of a claim against them by the employee for the advice.
  • The employee’s adviser must be identified.
  • The agreement must state that the conditions regulating settlement agreements have been satisfied.

Possible content of a settlement agreement

Other than the legal requirements listed above, the contents of a settlement agreement are largely at the discretion of the business and the employee involved. Examples of common clauses include:

  • Compensation for loss of employment.

  • Contribution to legal fees.
  • Waiver of claims by the employee, including warranty that the claims listed are the only claims which the employee has against the employer.
  • Re-assertion or modification of existing restrictive covenants.
  • Return of the employer’s property.
  • Indemnity from employee in relation to tax and National Insurance Contributions.
  • Undertaking from the employee not to use the employer’s confidential information or make any adverse comments about the employer.

Which types of claim can be settled by a settlement agreement?

Only certain statutory claims can be settled by a settlement agreement. These include claims for Unfair dismissal; Whistleblowing; Discrimination, victimisation or harassment related to age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation; and Equal pay.

Which types of claim cannot be settled by a settlement agreement?

There are several statutory claims that cannot be settled by entering into a settlement agreement, including some types of: Future personal injury claims (which have not yet arisen); and Claims for failure to inform and consult in connection with collective redundancies and on a transfer of a business.

Settlement Agreement Solicitor

If you are looking for a Settlement Agreement Solicitor we can help you. Our Settlement Agreement Solicitor offers a convenient, efficient, and friendly Settlement Agreement service to clients all over England and Wales.

If you are being offered a Settlement Agreement by your employer or wish to negotiate the terms of a Settlement Agreement with your employer, we can help you with your Settlement Agreement and give you the specialist advice that you need.

Why should you use Bird and Co Solicitors for your Settlement Agreement Advice?

We offer a fast, friendly, caring, and efficient service. More often than not we can provide you with your Settlement Agreement advice and get your completed Settlement Agreement returned to your employer all within 24 hours.  If you want to deal with a senior specialist employment lawyer who is a trusted adviser then Paul Hardy can help you.

You will have a direct line straight through to your Settlement Agreement Solicitor Paul Hardy on 01476 404109 and a direct email address to phardy@birdandco.co.uk

The advice will be given over the telephone and/or by email as you prefer and so there is no need for you to even personally meet us. This saves you the costs and stress of travelling to see a Settlement Agreement Solicitor for a face to face meeting.

You can guarantee that the advice you will receive will be tailored to be in your best interests and that it will be explained to you in a way that you will be able to easily understand.

Paul Hardy is an experienced member of the Employment Lawyers Association providing Settlement Agreement advice to clients all over England and Wales.

Our firm is regulated with the Solicitors Regulation Authority and is Lexcel accredited which is a guarantee that our processes and procedures have been approved, that we operate to a certain standard, and is a mark of the excellence of our service.

In short, you will get an excellent Settlement Agreement service from the comfort of your own home or office.

You don’t have the risk of instructing a lesser experienced or even inexperienced lawyer who may not be able to advice on some of the trickier issues which may arise in the terms of your Settlement Agreement.

Why don’t you need a Settlement Agreement Solicitor local to you?

In the old days you used your local solicitor. You would spend time getting to their office in the city centre or centre of town and all documents would be hand-produced and posted or delivered by hand.

That service came at a price, but the truth is that it is no longer needed. With a phone and modern technology such as scanning, emailing and even Skype or Facetime video calls there is no need to use your local solicitor. Your Settlement Agreement Solicitor Paul Hardy can be based anywhere and still provide a great service – even if he is in an office many miles away from where you are based.

We deal with Settlement Agreements all over the country every week of the year. There will be no need for you to visit our offices or hand deliver documents unless you are local to us and wish to pop in with your Settlement Agreement. You really need never leave your home – our Settlement Agreement Solicitor Paul Hardy will talk you through the process via phone and email, and everything works just as smoothly as it would if we were just down the road.

Online Settlement Agreement

There isn’t really any such thing as an online Settlement Agreement. Clients come to us for Settlement Agreement advice from all parts of England and Wales, having first found us via our website or through the internet on google, yahoo and bing.

After that, the relationship between you and your Settlement Agreement Solicitor Paul Hardy is the same as any other.

We have the same professional obligations towards you, and deal with your Settlement Agreement file in the same way.

It might feel like an online Settlement Agreement because you can talk to us through email on your computer, but really it is still proper Settlement Agreement advice that is fully compliant with Employment Law.

What is the process to instruct us for your Settlement Agreement?

Either you can call your Settlement Agreement Solicitor Paul Hardy now on 01476 404109 or 07736 809721 or you can fill in our Settlement Agreement enquiry form for Settlement Agreement advice. You can find the links at the top of this page.

Wherever you are employed our Settlement Agreement Solicitor can help give you the independent legal advice necessary with the minimum of fuss and inconvenience.

Fees for Settlement Agreement Advice

Your employer generally pays a fixed amount towards the legal fees of between £250 and £500 plus VAT. This amount is normally sufficient and so there is no extra cost payable by you unless the matter becomes complex. In cases that do become complex we always ask your employer to pay any additional costs rather than seek this from you.

In cases where it is clear that the compensation or termination payment which you are being offered is insufficient then we can offer you the following funding option alternatives in order to negotiate a better deal for you: Asking your employer to pay the additional costs of us negotiating a higher or fairer Settlement Agreement package particularly where the legal or tax issues are complex; Where your employer refuses to pay any additional costs by agreeing with you a reasonable fixed fee based on the value of the improved terms secured on your behalf; Exploring with you all other potential funding options such as whether you have legal expenses on your home contents/buildings insurance.