Our Frequently Asked Questions

If you have any questions related to settlement agreements, then please check out our FAQs below. 

If you have a question that hasn't been answered here, please contact us.

Your Questions Answered

What Exactly Is A Settlement Agreement?

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.

Is A Compromise Agreement The Same Thing?

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

How Would I Know If My Settlement Agreement is Valid?

Requirements for a legally valid settlement agreement are:

  • Is in written form
  • Has to reference a specific complaint or incident
  • An employee is required to receive advice from a lawyer before signing a settlement agreement.
  • The conditions that regulate the settlement agreement must be clearly specified.

Do I Even Need A Solicitor?

It is mandatory to have your own 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.

What Should I Do If I've Been Offered A Settlement Agreement?

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 around this area of law.

What Are The Costs for Legal Advice?

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 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 DPH Legal 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.

Should I Receive More Compensation For Being Employed Longer ?

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.

Do I Have To Accept My Offer Or Can I Negotiate?

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. It’s important that you 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.

Can My Age Affect The Amount I Could Get?

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.

Should My Agreement Come With A Reference Letter?

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.

Which Circumstances Dictate Whether I'm Entitled To A Settlement Agreement?

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:

  • bonuses or wages being withheld
  • claims of discrimination
  • statutory rights or employment contract breaches
  • poor performance disputes

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.