They were previously known as 'Compromise Agreements' until 2013 when they were renamed 'Settlement Agreements' as a result of changes in the law*. The change in name brought with it the ability for employers to offer a settlement agreement even when there was no dispute with the employee with the added security that discussions would remain private & confidential and could not be used in an employment tribunal or court.

*S.14 of the Enterprise and Regulatory Reform Act 2013 and, amending S.111A of the Employment Rights Act 1996

If your employer proposes to end your employment, either because of redundancy, grievance or a disagreement, a settlement or compromise agreement is used to agree the terms under which you will leave your job.

When you sign the settlement agreement and accept its terms, you lose your right to make the claims specified in the agreement against your employer in the Employment Tribunal or court. There are exceptions but these are limited.

Waiving your rights is often the driving force behind your employer seeking your signature on the settlement agreement.

For your settlement agreement to be legally binding and enforceable by both the employer and the employee, the law requires the employee to secure independent professional advice on the agreement and a relevant advisors signature on the agreement to confirm the employee has been given the relevant advice.

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Our fee is therefore fixed in line with your employer's contribution.

Your employer will pay our full fee with no cost to you.

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We will tell you if we can get you more money or whether the settlement agreement payments you have been offered amount to a fair deal.  If we consider you can get more money, our expert solicitors will work with you to formulate a winning strategy for negotiations.

Worried about costs? Don’t be - we will often agree to negotiate an increase on your settlement agreement payments on a ‘No Increase No Fee’ basis. This means that if we cannot secure you a better settlement package we will not charge you a penny. If we are successful in negotiating an increase we will charge you a percentage of the increased sum only. This means our costs are only paid out of any improved payment package we negotiate.

During negotiations we will consider your employer’s motivations and anxieties; your employer might be worried about the expense of defending an employment claim you may make, or about bad publicity. Or they might be anxious not to gain a reputation for paying people off.

We will always give you advice on what can and cannot be achieved in negotiations with your employer.

We understand sometimes it’s not all about the ‘money’ and you may simply want a written apology, better terms or a written reference as part of the settlement agreement. Whatever your goal, speak to our one of our experts today.

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When you instruct us, our expert solicitors will:

> Discuss your employment circumstances in detail;

> Help identify any employment claims you may have;

> Explain your tax liability under the terms of the agreement;

> Tell you if the terms of your compromise or settlement agreement are fair;

> Tell you if any terms are missing from your agreement;

> Explain the legal consequences of signing your agreement.

In addition we can also assist you with:

> Negotiating an increased compensation payment package; 

> Negotiating better terms;

> Negotiating the terms of a reference;

> Pursuing an employment claim.

If there is a deadline on you returning a proposed settlement agreement, we will work with you to ensure this deadline is met. We offer same day appointments and can turnaround advice on the day if required. If more time is needed to secure advice we will seek an extension to any deadline set by your employer on your behalf.

The Code of Practice set down by The Advisory, Conciliation and Arbitration Service (ACAS) states employees should be given a minimum of 10 days to secure legal advice when offered a settlement agreement. Employers are not legally required to abide by the ACAS guidelines however they can be criticised by the employment tribunal or court for failing to do so.

Once the terms of the agreement have been agreed, we will arrange a conference (in person, by video conference or telephone) to advise you on the terms of the agreement. You will then sign the agreement in person or electronically (if advice is given remotely), after which we will return your agreement to your employment to complete the process - all on the same day.

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A settlement agreement can be used to resolve most types of employment disputes, including those related to:

• Unfair dismissal
• Sick absence
• Capability
• Constructive dismissal
• Wrongful dismissal
• Whistle blowing
• Discrimination
• Victimisation
• Harassment
• Equal pay

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We can provide you with advice on your settlement agreement over the phone, by secure video conferencing or face to face. The choice is yours. Once we have considered your agreement and taken details of the background we will advise you on the important terms, the payments to be made to you, the legal consequences of signing the agreement and answer any questions you may have.

Once you are happy with the settlement agreement, we will ask you to sign the agreement and return it to us electronically. We will then complete the advisor's certificate and forward the completed settlement agreement to your employer ready for them to execute it.

We will also ask your employer to make payment of our fee on your behalf.

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Yes ... If you are located in England, Scotland or Wales, one of our employment law solicitors will discuss your compromise or settlement agreement in confidence.

We can provide you with expert advice on the same day, secure your signature electronically and return it back to your employer with our completed 'advisors certificate' the same day.

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Prior to 29th July 2013, settlement agreements were known as 'Compromise Agreements'.

In practice, there is little difference between a compromise agreement and a settlement agreement. However, as a consequence of the changes in the law, discussions about an offer of a settlement agreement and its terms can not be used in an employment tribunal or court unless there has been improper behaviour by your employer.

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