Our Frequently Asked Questions

A Settlement Agreement is a contract between an employer and an employee, which deals with possible legal claims by the employee. These include unfair dismissal, breach of contract and workplace discrimination. Employees should always make sure they receive legal advice from a solicitor if they have been offered or given a settlement agreement.

A Compromise Agreement is a type of Settlement Agreement. In 2013, the official name was changed to "Settlement Agreement" and other legal changes allowed employers to have protected dialogue regarding settlement agreement offers with their employees.

It is mandatory to have a legal advisor when it comes to employment matters. A solicitor will review the details of the settlement agreement and advise you on its effects so that you can decide whether or not to accept it.

It is important to talk to a lawyer as soon as possible if your employer offers to discuss a settlement agreement. We're a niche organisation, which means we've spent the past few decades focusing most of our time on settlement agreements. As such, we have a lot of experience and knowledge in this area of law.

Your company usually pays for the initial review and advice given by the solicitor and for the straightforward processing of the settlement agreement. Generally, an employer will contribute between £250 and £750 towards legal fees for a legal advisor to review your settlement agreement. Once you've signed the agreement, your solicitor will send the invoice directly to your employer for payment.

At Settlement Agreement Advice, we have a solicitor costs guarantee. This means for the review, advice and completion of the settlement agreement, our fees will be covered by your employer.

If you wish to negotiate terms or compensation then additional fees may apply. We are very clear and transparent and will not move forward until costs have been clearly explained and we have the go-ahead from you.

You may have a larger settlement if you have valuable skills and know more about your employer than they do. If you have been in a company for a long time, then it is likely that you will have more authority and influence. This may be an advantage when it comes to negotiation.

Don’t be so quick to accept your employer's initial offer. You have the right to negotiate, and there may be other options like taking your case to court. You must read the settlement agreement thoroughly before signing it. You should think about what you're aiming to get out of your settlement. Sometimes there are considerations other than money, such as a reference or quick resolution, which can outweigh the benefit of going to an Employment Tribunal.

Depending on your age and experience, you may qualify for less. If you find a new job quickly then you won't get too much of the award. However, if you are nearing retirement and are highly specialised, it might be harder for you to find new employment. However, this can be beneficial should we need to negotiate.

Your solicitor can ask for favourable job reference wording as part of the settlement agreement. The provision should only be activated when a new or prospective employer makes such a request.

Although settlement agreements may not seem like the most ideal option to get your grievances resolved, they provide a positive solution in most cases. The parties involved (you and your employer) might decide that there are better ways to address the issues.

Situations, where a settlement agreement could be used, include:

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• - bonuses or wages being withheld
• - claims of discrimination
• - statutory rights or employment contract breaches
• - poor performance disputes
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After a company has been through a merger, acquisition or other change in strategy, high-skilled individuals may find themselves in difficult circumstances. A settlement agreement can provide an ideal resolution to this issue by allowing people to go their separate ways amicably.