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Settlement Agreements

What is a settlement agreement?

A settlement agreement is an agreement between an employer and an employee that states that an employee will have no further claim against their employer.

These kinds of agreements are often used in situations where there has been a conflict between the two, and a business wants to ensure it is protected from legal action in the future.

In most settlement agreements an employee will be awarded a sum of money, and all agreements are bespoke, written to include all the specifics of a certain situation.

If you want to protect the future of your firm from claims made by employees who left under difficult circumstances, or you have been offered a settlement agreement by your company, and you need advice on whether it’s the best option for you, the expert team here at Ramsdens Solicitors can help. We have years of experience in this area and have worked with companies of all sizes, in a variety of sectors, as well as a variety of employees.


If an employee feels they have been poorly treated, then it is not uncommon for employers to opt for settlement agreements. These agreements draw a line under any legal action or dispute and prevent an employer from bringing further legal action in the future.

Generally speaking, a settlement agreement will contain

  • Details of the financial payout an employee will receive.
  • Specific details of the circumstances of the case.
  • A waiver of any claim for contractual breaches.
  • Confidentiality clauses.
  • Agreed references from the employer (designed to protect an employee’s future employment changes).

If you are leaving a job under difficult circumstances following a dispute with your employer, and you have been offered a settlement agreement, or if you believe your employer is in breach of a settlement agreement, our expert solicitors can advise on whether the agreement is right for you and your future employment plans.


For more information on our services and how we can help contact our specialist employment law team, get in touch by calling 01484 821 500 , email us at or use our contact form to the right.