Settlement (Compromise) Agreements Solicitors For Employers

Our Solicitors can provide expert help and advice on a settlement agreement

We offer specialised assistance and guidance, ensuring you receive expert advice tailored to your needs.

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What is a settlement agreement?

A settlement agreement is a contract between you as an employer and your employee.

You would use a settlement agreement in your business to resolve an employment dispute on agreed terms and conditions with your employee.

In this agreement, as the employer, you would usually agree to pay the involved employee a compensation payment. Because of this payment, your employee will then waive their rights to bring a claim against you.

Received a settlement agreement?

If you have received a settlement agreement and would like advice, please email a copy of the agreement along with your contact details to [email protected].

A member of our employment team will review the documents and arrange a consultation with you, usually within 24-48 hours (subject to terms and availability).

Reasons for a settlement agreement

As an employer, you can use a settlement agreement for several reasons. These can include:

Resolving disputes

Quickly and efficiently resolving employment disputes such as grievances or disciplinary issues in a fair and timely manner.

Avoiding legal action

If you reach an agreement with your employee, you can avoid the time, costs and uncertainty of an Employment Tribunal hearing.

Controlling costs

By agreeing to a settlement agreement, you will know the full compensation amount you will be giving to your employee. This will help you manage business costs and avoid any future potential legal fees if an agreement is not reached.

Maintaining positive employee relationships

By settling disputes quickly and efficiently, it can help you maintain a positive relationship with your employee, even if it results in the involved employee leaving the business, protecting the image and reputation of you and your company.

Protection against future claims

When you finalise an agreement with your employee, such agreements usually include a waiver of claims clause. This clause protects you and your business against future legal action to the matters settled within the agreement.

What must be included?

When creating a settlement agreement for you and your employee, there are certain aspects that must be included.

The agreement has to be in writing
The document must relate to a specific complaint raised by the involved employee
The involved employee entering into the agreement must have received independent legal advice from an adviser regarding the terms and conditions of the agreement
The independent legal adviser helping the employee involved must carry appropriate legal coverage
The agreement must clearly name the independent legal adviser involved.
Finally, your settlement agreement must state that all statutory requirements have been met

How Eric Robinson Solicitors can help your business

Our expert business law Solicitors can provide you with clear legal advice regarding creating a settlement agreement between you and your employee.

To speak to us and find out more, get in touch with one of our local branches at the following locations:

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