Skip to main content

Settlement Agreements

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.

We know...

Your time matters

That's why we are here for you however you need us.

  • Phone
  • Face to face
  • Video call

Contact us for a no obligation chat to discuss the best way for us to help you

We can help advise on:

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 to our quality of service.    Settlement Agreements are usually paid for by your employer and you are free to choose which solicitor you use to get the legal advice required.

Frequently Asked Questions

If we agree on a settlement outside of court is there any way in which we can prevent the employee from coming back to make another claim?

Yes if you reach a settlement through ACAS you are able to go for a legally binding agreement which states that neither side are able to come back later for a second bite of the cherry.

The other option is for you to get a settlement agreement under which the employee waives his or hers statutory rights in return for an agreed settlement which they have received independent legal advice. If an employee was to accept such a settlement it would make it impossible for them to return for another go.

Settlement agreements have to be drafted carefully as various legal decisions on the effectiveness or scope of a particular settlement agreement have in the past gone against employees based on the precise wording in the agreement. 

Is it best to settle a claim outside of court or is it worth fighting in court?

It makes more sense to settle a claim outside of the courts, in reasonable terms. You should consider fighting for a case if:

  • The party is plainly in the wrong but can’t be brought to see it
  • There are mitigating circumstances which are more than likely to have a big effect on any award you may have to pay
  • You believe a settlement would send the wrong message to other employees and possibly give rise to more trouble in the future

Employment Law Chesterfield

Very professional and showed empathy throughout.

Mr B, Walton

Professional yet personal & understanding. Excellent service

Mr P, Chesterfield

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

Mrs L, Old Tupton

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

“Katie Ash recently reviewed an employment agreement for me and provided extremely sound and practical HR advice. She took the time to understand my background and business requirements, which proved invaluable for me to reach the right professional solution. She displayed wide industry knowledge in HR employment matters and I would, without hesitation, recommend BannerJones and their legal and consultancy services provided by her.”

David Hart InXpress Sheffield

Excellent service due to business relationship with our solicitor.

Mr A, Chesterfield

Very efficient, friendly and professional. We would definitely recommend to friends and family. They made the whole experience problem free.

Mrs W, Mansfield

Service was incredible. Lee Foster made the transition smooth and easy. Thanks Lee!

Mr P, Rotherham

Very efficient, friendly, personable and excellent service.

Mr F, Bolsover

Our Expert Employment Law Team

Get in touch today

We take data privacy very seriously, and we want you to understand and feel confident about how we collect, store and handle your personal data. If you’d like to find out more you can read our Privacy Policy.

Talk to our team