If you’ve been offered a discrimination settlement agreement, get specialist advice before you sign. In most cases, your employer pays our fees, and we will never exceed that contribution without your consent.
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A discrimination settlement agreement resolves your claims on agreed financial terms. However, the terms need scrutiny before you sign. Discrimination cases can carry significant compensation, including for the emotional impact of what you’ve been through. Being treated differently at work because of who you are is not something you should simply accept.
At Settlement Agreement Advice, our employment discrimination solicitors will tell you honestly from the outset whether there’s a genuine opportunity to improve your position. Around 60 to 70% of clients simply need the agreement reviewed and signed off quickly. If that’s you, we’ll conclude it the same day. If there’s a real case for negotiating more, and in discrimination cases, there often is, we’ll tell you that too.
If discrimination has caused you to lose earnings, through dismissal, demotion, being passed over for promotion or being forced to leave, you can claim. There is no upper limit on financial loss compensation in discrimination cases.
This is a separate award that recognises the emotional impact of discrimination; the hurt, humiliation and distress it causes. From 6 April 2026, the updated Vento bands, which are used by employment tribunals to assess injury to feelings awards, are as follows: lower band £1,300 to £12,600 for less serious cases; middle band £12,600 to £37,700 for serious cases; upper band £37,700 to £62,900 for the most serious cases, with exceptional cases capable of exceeding £62,900.
These figures are updated every April to reflect inflation, so it is important to get current advice on what your claim could be worth.
Before signing a discrimination settlement agreement, give your solicitor the full picture. That means explaining what happened, when it happened and how it has affected you. The strength and value of a discrimination claim depend entirely on the specific circumstances. Your solicitor cannot advise you properly without the details.
By signing the agreement, you are waiving your right to pursue any claims listed in it. Discrimination claims can result in unlimited financial compensation. They can also include separate injury to feelings awards, so any settlement offer should reflect what you could realistically recover at tribunal. If it does not, negotiation is the right response.
If you have not yet raised the matter formally with your employer, a written grievance may strengthen your position before a settlement is agreed. Under the ACAS Code of Practice, your employer is required to investigate formally, hold a meeting and respond in writing. If you remain unhappy with the outcome, you have three months from the date of the discriminatory act to bring a claim in the employment tribunal.
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Employers often prefer to resolve discrimination claims privately, before they reach a tribunal. A tribunal hearing is a matter of public record. The reputational consequences of a discrimination finding can be significant. This gives employees with strong discrimination claims genuine leverage. Our specialist solicitors will know how to use that leverage appropriately in negotiations.
Our solicitors advise both employers and employees on settlement agreements. That’s unusual: most firms pick a side. It means we know exactly how employers think, which clauses they’ll move on and which they won’t. In discrimination cases, especially, that experience directly influences how we negotiate on your behalf.
Every solicitor at Settlement Agreement Advice has a minimum of five years’ experience. Your case will never be handled by a junior solicitor.
If you have questions or need guidance on where to start, you can arrange a free no-obligation telephone appointment with a settlement agreement lawyer at Settlement Agreement Advice. Simply call us, request a callback or begin the process online.
Employees who believe that they may have been subjected to discriminatory treatment would be advised to issue a formal written grievance. This is under the ACAS code of practice governing workplace disputes.
It will require their employer to instigate a formal process to address their concerns. This includes investigating those concerns and setting up a meeting to discuss them. Then there will be a written conclusion issued with reasons for that conclusion, together with the right of appeal.
If an employee remains unhappy following the conclusion of a formal grievance process, they are at liberty to issue a claim in the employment tribunal. This must be done within three months of the date of the alleged act or omission which they say gives rise to a claim of discrimination.
Discrimination claims are among the most complex and potentially high-value claims in employment law. Getting specialist advice before you sign ensures you understand what your claim is worth, what you are giving up and whether the terms on offer are fair. Our solicitors deal with discrimination settlement agreements every day and are available the same day you get in touch.
Yes. Discrimination claims do not require your employment to have ended. If you are still employed but your employer wants to resolve a discrimination claim, they can do so using a settlement agreement that compensates you while your employment continues. You are not required to leave your job as a condition of settlement.
Discrimination claims must be brought to an employment tribunal within three months of the act or omission that gave rise to the claim. If you miss this deadline, you will generally lose the right to pursue it. If you have been offered a settlement agreement, it is important to take advice quickly, particularly if the three-month window is approaching.
The compensation in a discrimination settlement agreement depends on what the payment represents. Compensation for injury to feelings is generally free of income tax up to £30,000. Compensation for financial loss, such as lost earnings, is treated as taxable income. Your solicitor will advise you on the tax treatment of each element of your settlement before you sign.
No. Settlement agreements are negotiated documents. If the initial offer does not adequately reflect the value of your discrimination claim, including both financial losses and injury to feelings, your solicitor can negotiate on your behalf. Employers with valid discrimination claims against them often have more flexibility than their first offer suggests.
Many discrimination cases involve more than one type of claim. This includes disability discrimination alongside unfair dismissal, or sex discrimination alongside constructive dismissal. A settlement agreement can resolve multiple claims simultaneously. Your solicitor will make sure every relevant claim is identified and factored into the compensation assessment.
In most cases, your employer contributes towards your legal fees.
We will always explain costs clearly before carrying out any additional work. We will not exceed your employer’s contribution without discussing it with you first and obtaining your agreement.
If you are happy to sign the settlement agreement as it stands, our fees will never exceed your employer’s contribution. However, if the agreement is unfair and it is clear that we can negotiate better terms for you, we will always explain the costs clearly and obtain your agreement before undertaking any additional work.
I’ve been advising employees on settlement agreements for over two decades. In that time, employment law has shifted considerably. However, what’s coming in January 2027 is, in my view,
A settlement agreement payment (lump sum) under £30,000 is not taxable. Payments under £30,000 are not taxable providing they do not include other contractual payments. A settlement agreement payment
What does a Solicitor do with a Settlement Agreement? When your employer offers you a settlement agreement, you are legally required to take independent advice before signing. But what does that advice
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