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Settlement Agreements

A Settlement Agreement is a formally written agreement that brings to an end a contract of employment. Settlement Agreements can work well for both employers & employees where things have gone wrong. This is because they remove the uncertainty, risk & stress of Tribunal claims. They are usually much less costly, too.

Essentially, a Settlement Agreement compromises any dispute between the employer and employee and will prevent the employee from bringing any claims in the Employment Tribunals or the civil courts. In return, the employee will receive a lump sum or termination payment and typically a written employment reference as well. The employer will also make a contribution to the employee’s costs in taking his/her own legal advice in relation to the Settlement Agreement.

We can prepare the Settlement Agreement and negotiate with the employee and make sure that everything is signed off properly.


To discuss Employment issues, please either use the contact form on the right, email us at or call us on 01484 821 500 to speak to a member of our team.