Settlement Agreements

A Settlement Agreement – formerly called a Compromise Agreement – is a legally binding contract which can be used to end an employment relationship on agreed terms. 

A Settlement Agreement can be proposed by you, or by one of your employees.

Provided a proper process is followed, a Settlement Agreement can be used to resolve all manner of workplace disputes such as wage disputes and holiday disputes. A Settlement Agreement can also be used to end the employment relationship on agreed terms.

In the event that you are not able to reach an agreement – provided you follow a proper procedure (by way of Protected Conversations and/or Without Prejudice dealings) – any discussions that you have with your employee cannot be referred to as evidence in any subsequent unfair dismissal claim. This can provide you with the confidence required to discuss sensitive issue with an employee.

We can provide you with a bespoke Settlement Agreement and work with you to help you achieve the successful conclusion of a settlement with your employee.

Once a Settlement Agreement has been signed by all of the parties – and an independent solicitor – the employee will be prevented from making an Employment Tribunal claim against your company.  This can provide you with invaluable peace of mind and will allow both you and your employee to move on.


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