Settlement Agreement Solicitors

We advise employers on the suitability of a settlement agreement. Where needed, we can draft the agreement and advise employers on the statutory requirements.

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A settlement agreement (previously known as a compromise agreement) is a legally binding contract between an employer and an employee. They are used to resolve work-related disputes. The employee will be given some kind of remedy, which is usually a lump sum of money and an agreed reference. In return, the employee waives their right to bring any further legal action against the employer.

Most commonly, the employee will exit the business after signing a settlement agreement, although it is possible for the working relationship to continue.

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Legal advice for employers

Settlement agreements can be an effective tool in concluding an employment relationship and averting the risk of future legal action. Often this will be a highly attractive prospect for an employer, who may want to dismiss an employee while protecting themselves against claims for unfair dismissal, constructive dismissal, discrimination or other alleged breaches.

However, settlement agreements are only suitable in some circumstances. To be effective, they must comply with certain statutory requirements and provide for appropriate consideration (or payment). Due to these complexities, it is essential for an employer to seek expert legal advice in relation to a settlement agreement.

At Aticus Law, we help employers with all aspects of settlement agreements. We can:

  • Advise on the suitability of a settlement agreement and explain circumstances when a settlement agreement is not possible
  • Draw up an effective settlement agreement
  • Explain the statutory requirements needed to make the agreement legally valid
  • Negotiate with the employee’s legal representative, if amendments are proposed

Speak to our solicitors

Our employment law solicitors act for employers across England and Wales. If you are interested in offering an employee a settlement agreement, we can help. We will act in your best interests, applying our legal expertise to protect the business and bring a swift conclusion to the work-related dispute.

Get in touch with our experts today for free, no obligation legal advice


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Call or email us in order for us to discuss in greater detail how our solicitors can move your case forward today.

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