Sex Discrimination in the Workplace

Yes. Settlement agreements are negotiable. In discrimination cases, employers often have a significant incentive to settle quickly and confidentially. Our settlement agreement lawyers regularly negotiate improved offers for clients with sex discrimination claims, achieving increases of 25 to 50% on average.

Compensation for sex discrimination, which is a common element in discrimination settlement agreements, is generally exempt from income tax up to a statutory limit. There are a few important distinctions to be aware of:

• The £30,000 Limit – This threshold applies specifically to the termination element of a settlement (loss of office). Any compensation for loss of employment up to £30,000 can be received tax-free.
• Injury to Feelings (Pre-termination) – If the discrimination occurred during employment and was not the reason for leaving, that portion of the compensation can often be paid entirely tax-free, even where it exceeds the £30,000 threshold.
• Post-2018 Rules – However, if the injury to feelings is directly connected to the termination itself, it falls within the £30,000 limit rather than being treated separately.

Our solicitors will explain exactly how your settlement is structured and what the tax implications are before you sign.

No. You are never obliged to sign a settlement agreement. If you do not sign, you retain the right to pursue a claim at an employment tribunal. Our employment law solicitors will advise you honestly on whether signing is in your best interests or whether you may achieve a better outcome by pursuing a tribunal claim.

In most cases, we can review your settlement agreement and provide advice on the same day we receive it. The full process, including negotiation where applicable, typically takes around seven days, depending on how quickly your employer responds.

In almost all cases, your employer will include a contribution towards your legal fees within the settlement agreement itself. This means that in most circumstances, taking advice from our solicitors will cost you nothing.

Ongoing or historic discrimination can form the basis of a stronger claim and may increase the value of a settlement. Our settlement agreement lawyers will consider the full history of your situation when advising you on the appropriate level of compensation to seek.

Yes. Most settlement agreements include a confidentiality clause that prevents both parties from disclosing the terms of the agreement. This is standard practice and applies equally to your employer.

However, confidentiality is not absolute. Since 1 October 2025, under the Victims and Prisoners Act 2024, any clause that attempts to prevent you from the following is void and unenforceable:

• Reporting a crime to the police
• Seeking legal advice
• Speaking to a regulated healthcare professional

This means that regardless of what a confidentiality clause says, you cannot be legally bound to silence in these circumstances.

These protections apply to anyone who is, or reasonably believes themselves to be, a victim of a crime and they cannot be contracted out of.

Our solicitors are required by the Solicitors Regulation Authority (SRA) to ensure these exceptions are explicitly built into any confidentiality clause we advise on. We will always make clear exactly what you can and cannot discuss before you sign.