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Settlement Agreements

The Employment Law solicitors at Banner Jones are specialists in both advising on, and preparing settlement agreements.

Settlement Agreements in Chesterfield, Sheffield, Dronfield and Mansfield

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Why Choose Banner Jones Employment Law Solicitors?

The Employment Law solicitors at Banner Jones are specialists in advising on, and preparing, settlement agreements. We can help advise on:

  • The tax implications of the compensation to be paid
  • The inclusion of an indemnity for any tax
  • The provision and content of a reference
  • Restrictive covenants (whether existing or new) and confidentiality, as well as restricting comments after termination
  • The types of claims that shouldn’t be included in a settlement agreement

We understand that once a decision has been made to enter in to a settlement agreement, time is of the essence and we are able to work within very short deadlines, without any compromise on our level of service to you.

Expert Employment Law Solicitors

Our expert employment law solicitors are highly experienced and will treat each case uniquely depending on your circumstances. Our employment law specialists achieve solutions through confidential settlements and are always on hand to provide support when resolving employment law problems. We have worked on many employment law cases and each individual receives the upmost care and consideration throughout the case.

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How Can Our Employment Law Solicitors Help?

The Employment Law solicitors at Banner Jones are specialists in both advising on, and preparing settlement agreements.

Settlement agreements (previously known as compromise agreements) are contracts that can be entered in to by an employer and an employee to settle any employment rights or claims that the employee may have.

They are usually used to terminate an employee’s employment, and if negotiated properly, are a very useful tool for employees and employers as they enable the employer to ensure that no future claims will be made by an employee, whilst allowing an employee to receive a financial payment (very often tax free) as compensation for giving up such rights. They save the need for employment tribunal proceedings which can be expensive and time-consuming, and may attract potentially damaging publicity.

In order to be binding, there are several requirements that must be fulfilled, however, the most important is that the employee must take independent legal advice on the contents and the effect of the agreement before agreeing to enter in to it.

If you have an employment problem, often it is something else for consideration within your case, so it is always worth contacting an employment law solicitor and finding out for certain.

At Banner Jones we can advise you on your legal rights regarding employment law, where they relate to the following:

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A Step-by-Step Guide to Settlement Agreements For Employees

Free guide

A Step-by-Step Guide to Settlement Agreements For Employees

This guide sets out the steps involved if you’re an employee considering the offer of a settlement agreement and are looking for advice on how to navigate the process in England and Wales.

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Mrs L, Old Tupton

Meet the Team

Katie Ash

  • Director
  • Solicitor
  • Head of Employment Law
Settlement Agreements Team Members

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Frequently Asked Settlement Agreements Questions

What is a Settlement Agreement?

A Settlement Agreement is a legally binding contract between an employer and employee that sets out the terms for settling any claims an employee may have arising from their employment. It is usually used to end the employment relationship. It usually includes financial compensation and other agreed terms in exchange for the employee waiving their right to bring certain legal claims against the employer.

Why might I be offered a Settlement Agreement?

You may be offered a Settlement Agreement if:

  • Your employer is restructuring or making redundancies.
  • There’s been a dispute or grievance at work.
  • Your employer wants to avoid the risk of future legal claims. It’s often used to ensure a clean break with agreed terms and follows what is known as a without prejudice discussion or a protected conversation.
Do I have to accept a Settlement Agreement?

No. You are not obliged to accept a Settlement Agreement. You should take time to consider the offer and seek independent legal advice with an Employment Law specialist before signing. Legal advice is mandatory and a Settlement Agreement won’t be binding without this. You may also be able to negotiate better terms. We can help you with this.

What should be included in a Settlement Agreement?

Typical terms include:

  • A financial settlement (e.g. compensation, notice pay, holiday pay, bonuses).
  • A reference for future employment.
  • Confidentiality clauses.
  • Restrictive convenants.
  • Waiver of legal claims.
  • Legal fee contribution from your employer.
Will I need legal advice before signing a Settlement Agreement?

Yes. It’s a legal requirement that you receive independent legal advice before signing a Settlement Agreement. Banner Jones Solicitors’ Employment Law specialists in Sheffield, Chesterfield and Mansfield can provide this advice and ensure you fully understand your rights and the implications of the agreement.

Will my employer pay for legal advice related to a Settlement Agreement?

In most cases, your employer will contribute towards the cost of your legal advice. This will be stated in the agreement. Banner Jones will confirm whether the contribution covers the full cost or if any additional fees apply.

Can I negotiate the terms of the Settlement Agreement?

Yes. You are entitled to negotiate the terms, including the financial settlement, reference wording, and any restrictive covenants. Our Employment Law specialists can negotiate on your behalf to ensure the best possible outcome.

How quickly can the Settlement Agreement be completed?

We understand that time is often critical. Our Employment Law specialists in Sheffield, Chesterfield and Mansfield can usually review and advise on your agreement within 24–48 hours, depending on complexity and availability.

Will the payments under the Settlement Agreement be tax-free?

Some payments under a Settlement Agreement may be tax-free, such as compensation for loss of employment up to £30,000. However, other payments like notice pay are subject to tax.

What happens if I don’t sign the Settlement Agreement?

If you choose not to sign, your employment may continue or end through other means (e.g. redundancy or dismissal). You may retain the right to bring legal claims depending on the circumstances and we can help you with any internal process or legal claim if you want to instruct us to help you with this.

Settlement Agreements Resources

Negotiating the Executive Exit: A Senior Employee's Guide to Settlement Agreements

Negotiating the Executive Exit: A Senior Employee's Guide to Settlement Agreements

Negotiating an executive exit? This article covers settlement agreements, restrictive covenants, tax considerations and negotiation strategies — with expert support from settlement agreement solicitors in Sheffield, Chesterfield and Mansfield.

An Office Romance - What Employers Should Be Aware of When Managing Relationships at Work

An Office Romance - What Employers Should Be Aware of When Managing Relationships at Work

Discover how employers can effectively manage office romances while respecting privacy, preventing conflicts of interest and meeting the duty to prevent sexual harassment. Banner Jones’ Employment Law specialists provide guidance, policies and training to keep your workplace compliant and protected.

Statutory Sick Pay Changes April 2026: What SMEs Need to Know

Statutory Sick Pay Changes April 2026: What SMEs Need to Know

From April 2026, Statutory Sick Pay rules are changing. We explain what SMEs need to know, how SSP is changing and how to manage sickness absence safely.

Neurodivergence in the workplace - Legal Insights and Practical Steps for Employers

Neurodivergence in the workplace - Legal Insights and Practical Steps for Employers

As diagnoses of ADHD, autism and other forms of neurodivergence surge - particularly among younger generations - the challenge for employers is no longer awareness, but action. From legal obligations under the Equality Act to the cultural shift in how we understand difference, the workplace is being rewired.

Employment Law Changes from April 2025 – what do employers need to know?

Employment Law Changes from April 2025 – what do employers need to know?

As part of the government’s pledge to deliver on its promise to Make Work Pay, we will see various statutory payment rate changes from April 2025 as well as an increase to the minimum wage and Neonatal Care Leave becoming a day 1 right.

What are the proposed changes to the Employment Rights Bill?

What are the proposed changes to the Employment Rights Bill?

The UK Government's consultation on the Employment Rights Bill has culminated in several significant amendments aimed at enhancing workers' rights while addressing concerns from businesses and other stakeholders. Initiated in October 2024, the consultation sought feedback on various aspects of the proposed legislation, leading to a series of revisions being published at the beginning of March 2025.

Neonatal Leave becomes a Day 1 right

Neonatal Leave becomes a Day 1 right

The Department for Business and Trade confirmed that a day one right to neonatal leave for working families with babies in neonatal care will be introduced from 6 April 2025.

Employment Law Changes in 2024 and What Employers Can Expect for 2025

Employment Law Changes in 2024 and What Employers Can Expect for 2025

The UK employment law landscape has undergone significant changes in 2024, and more updates are on the horizon for 2025 and beyond. These reforms impact employers, demanding careful consideration by them to ensure they are legally compliant and ensuring they are following best practice.

A Step-by-Step Guide to Settlement Agreements For Employees

A Step-by-Step Guide to Settlement Agreements For Employees

This guide sets out the steps involved if you’re an employee considering the offer of a settlement agreement and are looking for advice on how to navigate the process in England and Wales.

Improved Redundancy Protection for Maternity Leave

Improved Redundancy Protection for Maternity Leave

New Regulations came into force on 6 April 2024 in England and Wales to give pregnant employees and those on maternity leave or family-related leave better protection from redundancy.

What is Carer's Leave?

What is Carer's Leave?

Carer's Leave is where employees apply to be absent from work to provide or arrange care for a dependant with a long-term care need.

Changes to statutory Paternity Leave come into force

Changes to statutory Paternity Leave come into force

The Paternity Leave (Amendment) Regulations 2024 have now come into force, bringing with them changes which see fathers or partners of children born or adopted after 6th April 2024 being able to take their paternity leave entitlement in 2 blocks of one week within the first year of the birth or adoption of their child.

An Office Romance – Should a workplace relationship be disclosed?

An Office Romance – Should a workplace relationship be disclosed?

Disclosing a workplace relationship depends on various factors, including company policies, the working environment, and the nature of the relationship. Our Employment Law Specialists in Sheffield, Chesterfield and Mansfield, explain some considerations to help employees navigate what can sometimes be a complex situation.

Workers to be given the statutory right to request more predictable working patterns

Workers to be given the statutory right to request more predictable working patterns

The Workers (Predictable Terms and Conditions) Bill received Royal Assent on 18 September 2023, becoming the Workers (Predictable Terms and Conditions) Act 2023. This new legislation will give workers the right to request more predictable working patterns relating to the number of hours, times and days of the week that they work.

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How to Make a Will

Making a Will is commonly associated as something you do in later life however, in reality anyone over the age of 18 can have a Will and we would strongly recommend it to anyone with children.

Paternity Leave - Calendar News 15th June 2023

Paternity Leave - Calendar News 15th June 2023

Head of Employment Law at Banner Jones, Katie Ash, features in this recent Calendar News item about why people are campaigning for legal reform.

Can a UK employee work remotely in another country?

Can a UK employee work remotely in another country?

With the rise of remote work opportunities and the desire for more flexible lifestyles, many UK employees are considering the possibility of working remotely from another country, particularly during the summer months. In this article, we will explore whether a UK employee can work remotely in another country, examine relevant UK laws, and discuss important precautions to consider.

Paternity leave – what is it and why does it matter?

Paternity leave – what is it and why does it matter?

Here Katie Ash, Head of Employment Law, explains what Paternity Leave is, what fathers are entitled to and why businesses need to place as much importance on supporting men in the workplace, as they do women.

How will the teacher strikes affect you?

How will the teacher strikes affect you?

The news this week that teachers from the National Education Union had voted for more strike action in England and Wales will have left lots of working parents – and their employers – wondering how they are going to manage if the employee’s child’s school is closed.

Can a flexible working request be reversed?

Can a flexible working request be reversed?

For many, the Covid-19 crisis is starting to feel like a distant memory. However, there are still changes to the way we live and work today that were influenced by the restrictions that were put in place. The biggest example in employment law is the shift to working from home.

New redundancy protection legislation

New redundancy protection legislation

New legislation is expected to complete its course through parliament giving rise to new requirements on employers to offer alternative positions to those subject to redundancy during pregnancy or in the six months after returning to work and businesses must be ready to respond.

Settlement Agreement Advice

Settlement Agreement Advice

Katie Ash explains and answers some questions about settlement agreements.

New legislation on tipping protocols

New legislation on tipping protocols

Hospitality workers must receive all gratuities and service charges without deductions in future.

Dyslexia- What reasonable adjustments should your employer be making?

Dyslexia- What reasonable adjustments should your employer be making?

World Dyslexia Awareness Week 2022 will run from the 3rd to the 9th October. This annual event aims to raise awareness of dyslexia amongst the general public, educational institutions, and employers.

Holiday pay ruling upheld for part year workers

Holiday pay ruling upheld for part year workers

Holiday pay for those who work only part of the year and have no contractually set hours should be calculated on the basis of average earnings, the Supreme Court has confirmed. 

What counts as bullying in the workplace?

What counts as bullying in the workplace?

Experiencing unfair treatment in the workplace can be distressing and can have an impact on your life both in and out of work. You may be worried about your financial situation if you leave, your performance at work, or suffer from low self-esteem. However, there are laws to protect employees from such treatment, but you must first understand what type of negative treatment you are experiencing under the law. In this article, we look at what bullying in the workplace is, and what you can do if you are a victim.

Employment Law: Age Discrimination in the Workplace

Employment Law: Age Discrimination in the Workplace

Age discrimination claims to employment tribunals have risen steeply since the pandemic, and a recent case has highlighted the challenge for employers using a mandatory retirement age.  

Video: Restrictive Covenants

Video: Restrictive Covenants

At Banner Jones Solicitors, we can help with all aspects of employment law. In this video, we will discuss restrictive covenants and how they can impact you. For more information, watch our video. 

Brexit: supporting your European employees in the UK & British employees abroad

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As the UK prepares for the end of the Brexit transition, new laws will be coming into place from 1st January 2021 which will affect businesses, as well as the people who work in them. But what are the expectations on you as an employer?

Health & Wellbeing in The Workplace

Health & Wellbeing in The Workplace

As an employer, you will know just how important the wellbeing of your staff can be, but it’s not always easy to implement. At a recent ‘Listen & Learn’ event in Chesterfield, Banner Jones Solicitors’ Employment Law team discussed the importance of having a wellbeing focus in the workplace and, in this article, Head of Employment Law, Katie Ash focusses on the methods of best practice when it comes to ensuring that strategies are all encompassing and effectively implemented.
Uber drivers entitled to workplace protections

Uber drivers entitled to workplace protections

The ‘gig’ economy is characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs. Depending upon your viewpoint, it is either a positive working environment that offers a great deal of flexibility (for example, employment hours in the control of the individual) or it is a form of worker exploitation with very little protection (for example, lack of paid holidays, sickness benefit and so on).

To employ or not to employ?

To employ or not to employ?

For a new business the first year is all about survival, but what happens when your business is doing more than just surviving and is starting to flourish? As a business grows it is inevitable that the amount of time that needs to be invested to secure its future is too much for one person, particularly if that person is a working parent wanting to maintain a sensible work-life balance.
GDPR – TIPS FOR EMPLOYEES

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Complying with GDPR is the responsibility of every employee so we’ve written some tips on how you can help your business stay compliant.

The Gig Economy

What is the “gig economy” and how large is it? The gig economy is defined as “a labour market characterised by the prevalence of short-term contracts or freelance work as opposed to permanent jobs”.
The General Data Protection Regulations

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What do you need to know? The General Data Protection Regulations (‘GDPR’) come in to force on the 25th May 2018 and whilst the Regulations are new, the principles and requirements are not. The GDPR is an overhaul of the Data Protection Act 1998 (‘DPA’), and extends to the processing of personal data of all data subjects in the whole of the EU. Brexit will not prevent businesses from needing to comply with the Regulations. In practice for those businesses that have already been complying fully with the DPA, they should not need to undertake much work to ensure that they are compliant with the GDPR, and will at the very least have the basics in place.

Notification of email checks required

Notification of email checks required

A recent ruling by the European Court of Human Rights has provided further specific clarification of companies’ responsibilities in respect of their employee email policies. Katie Ash, Head of Employment Law said, “The ECHR ruling in case of Bogdan Bărbulescu could shape extent to which firms can monitor employees’ private communications”. In essence, the court ruling says that not only must a company policy inform employees that they reserve the right to monitor employee emails, but they must also let employees know when they are doing so.

The impact of Brexit on the UK’s Employment Law

The impact of Brexit on the UK’s Employment Law

As the Nation waits with baited breath to discover what the Government’s strategy for leaving the EU will be, when it will happen and whether it will be a ‘hard’ or ‘soft’ Brexit, many employers are, unsurprisingly, concerned about what the future of employment law will look like. How quickly will it change, what will their obligations be, and what steps will they need to take to ensure compliance?

Employees negligence can amount to gross misconduct

Employees negligence can amount to gross misconduct

The Court of Appeal recently ruled that a senior manager’s negligence in failing to ensure that a colleague followed company policy could amount to gross misconduct justifying the manager’s summary dismissal.

Do employers care about their employees financial well-being?

Do employers care about their employees financial well-being?

A recent study has found that only one in three employees believes their employer cares about their financial wellness.

Which benefits do employees value the most?

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We’re living in a world where employee benefits are perhaps more varied than ever before.

Unfair Dismissal Guide

Unfair Dismissal Guide

A guide for employees with essential information on employment rights, capability, conduct, gross misconduct, redundancy, illegality and automatic unfair dismissals.

Online Privacy in the Office

Online Privacy in the Office

Companies are within their rights to monitor the private online activities of their employees when they are in the office.

I recently used Katie Ash for an employment settlement agreement. I found her to be very knowledgeable, friendly and she explained points clearly, and used understandable language.

Mrs H, Chesterfield

Katie is understanding, considerate and very kind and thoughtful in her manner.

Mrs L, Old Tupton

The service I received was first rate. I would have no hesitation in using Banner Jones again.

Mr C, Stretton

Fantastic information and thorough. Would recommend.

Mrs H, West Bridgeford

Straightforward explanation of each section of the settlement agreement with ample opportunity to ask questions and have “plain English” discussion. An open and friendly, but professional manner was evident from the advisor.

Mr R, Clay Cross

It was a real pleasure to meet with Katie Ash; she made my “getting legal advice” simple, straightforward with compassion yet professional.

Mr P, Rise Park

We have used Banner Jones for employment advice for over 20 years and the team have always found the best approach to resolve our problem

Mr. Richard Kay, Operations Manager, Stagecoach East Midlands

We’re really grateful for the work you did for us. 10 out of 10!

Mr & Mrs S, Bridlington

Very easy to make appointments, very personal service from all people at Banner Jones, my solicitor was very friendly and put me at ease. If I needed a solicitor again, Banner Jones would be the first on my list.

Mr C, Dronfield

Brilliant service, kept well informed all the way through the process. Would definitely recommend.

Miss H, Nottinghamshire

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