Settlement / Compromise Agreement - Your Legal Rights

The strength to deal with my employers on an equal basis

If you are presented with a Settlement Agreement (previously known as a Compromise Agreement), you are also likely to be told that it is a condition of the agreement that it is signed by you and your solicitor

Is our job just to witness it?

Whilst all Settlement Agreements require you to obtain independent legal advice on the "terms and effect of the Agreement and the impact on your ability to pursue your rights before an employment tribunal", our advice goes beyond that and includes:

  • Discussing and considering the circumstances leading up to the Employer’s decision to propose a Settlement Agreement
  • Discussing and advising on any potential claims arising out of your particular circumstances
  • advising on the reasonableness of any financial settlement offered
  • explaining and advising on the tax implications of any payments or benefits included
  • considering the agreement in conjunction with any provisions in your contract of employment  which may continue to be binding on you

How else can we help?

In some instances we can also:-

  • negotiate improved terms with your employer
  • assist you to pursue a claim if an acceptable agreement cannot be reached

What are the important things to note?

Settlement Agreements are designed to ensure you can't bring any employment claims against your employer after you have signed it.

Do I have to sign it?

No but your employer will only provide a contribution towards your legal fees if you sign the Agreement and therefore any legal costs will remain your responsibility if you don’t sign.

How much will it cost?

The employer will usually contribute towards the cost of the advice (see above). In the majority of cases this will fully cover all of your costs.

In circumstances where, after having taken our advice, you instruct us to into negotiations to achieve a more favourable settlement for you, there may be a higher fee. It will be your decision in advance and as part of those negotiations we may also be able to increase your employer's contribution towards the legal costs.

What shall I bring when I meet with you?

Please bring the following items (if available):

  1. Your Settlement Agreement;
  2. Your contract of employment;
  3. A recent payslip (which shows your usual rate of pay); and
  4. Any relevant documents referring to your complaints (if any).

If you have any questions do let us know.

Employment solicitors

If you would like further information, please contact Reena Sharma or Stacey Edgley at our Farnborough office or Mel McCrum at our Ash Vale office. They are all members of the Employment Lawyers Association.

Also take a look at our settlement agreement guide.