Settlement Agreement Solicitors

Should you find yourself facing redundancy, workplace conflict, or a proposed mutual exit, your employer may ask you to sign an employment settlement agreement. A legally binding contract that typically involves waiving your right to pursue claims in an employment tribunal. Before signing, it's essential to understand your rights and ensure the terms are fair.

Why Legal Advice for a Settlement Agreement is essential?

To be legally valid, a settlement agreement must meet strict legal criteria under UK law. One of these is that you must receive independent legal advice from a qualified adviser—usually a solicitor. Most employers will contribute to the cost of this legal advice.

Here at Lamb Brooks, our experienced employment solicitors have supported employees at all levels, from junior staff to senior executives, through hundreds of settlement agreements.

As part of our offering, we'll:

• Review the terms and compensation offered
• Explain what legal claims you may be waiving
• Negotiate improved terms where appropriate
• Provide the required Adviser’s Certificate to validate your agreement

A settlement agreement (formerly known as a compromise agreement) is a written contract between you and your employer that formally ends your employment on agreed terms. It often includes a financial payment in exchange for waiving your right to bring legal claims to an employment tribunal.

For more information on what conditions must be met by your employer, take a look ACAS' Codes of Practice for Settlement Agreements.

There are a number of employment claims which can be settled by this document:

• Unfair dismissal
• Discrimination & Equality
• Bullying and Harassment
• Equal pay
• Whistleblowing
• Redundancies Disagreements
• Breach of Contract (e.g unpaid bonuses etc)
• Parental Leave & Working Time Breaches

If your employer has handed you a settlement agreement, it’s a strategic move to protect their business. These agreements are often used to bring your employment to a close quickly and quietly, while preventing you from taking legal action later.

Whether it’s to avoid the risk of an unfair dismissal claim, a discrimination dispute, or simply to manage a restructure, the goal is to limit their exposure and not necessarily to prioritise your best interests. That’s why it’s so important to have someone in your corner who can make sure your compensation is fair, and that your rights and your future are fully protected.

What is included?

Each settlement agreement may vary depending on individual circumstances, a reasonable agreement typically includes the following key elements:

1. Leaving Date - The agreed-upon date your employment will officially end.
2. Outstanding Payments - This includes any outstanding wages, accrued holiday pay, bonuses, and other contractual entitlements.
3. Notice Period - Confirmation of whether you will work your notice, be paid in lieu of notice (PILON), or if it will be waived entirely.
4. Compensation - A settlement payment offered in exchange for waiving certain rights or claims.
5. Legal Fee Contribution - Details of any contribution your employer will make toward your legal costs.
6. Waiver of Claims - A clause confirming that you agree not to pursue any legal claims against your employer in the future, except for specific excluded claims.
7. Confidentiality Clauses - Provisions that restrict you from disclosing the terms of the agreement or certain information about your employer.

Settlement agreements must be reviewed by an independent legal adviser to be valid. Most cases, this will be a qualified solicitor experienced in employment law. If you'd like one of our employment solicitors to review your case and provide tailored advice, feel free to get in touch.

Alternatively, advice can also be given by a certified trade union representative or an authorised adviser from an advice centre.

Looking for support with a settlement agreement? Contact our experienced solicitors today at 01256 844888 or email enquiries@lambbrooks.com.