Rebecca Bennett
Solicitor
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Date Published:24 Nov 2021 Last Updated:25 Nov 2021

What is a settlement agreement and why have I been given one?

Employment Law Advice

A settlement agreement is a legally binding agreement between you and your employer.

A settlement agreement is offered as a way to bring the employment relationship to an end in a mutually agreed way. It is essentially a ‘clean break’ between employer and employee. You may be offered a settlement agreement as part of your employer’s standard practice or to settle a contemplated Employment Tribunal claim against your employer.

A settlement agreement will be offered to you on a ‘without prejudice’ basis. This means that the discussions and the agreement itself is ‘off the record’ and it cannot be referred to in any open HR process or proceedings.

Why do I need a solicitor to advise me on the settlement agreement?

As part of the agreement, you will be agreeing to waive your right to pursue any claims against your employer in relation to your employment and its termination. As this is a very onerous request, you are required by law to have the agreement explained to you by a relevant adviser (i.e. a solicitor).

Who pays for a settlement agreement?

Your employer will prepare and send you the settlement agreement. As part of the agreement, your employer will normally agree to contribute to your legal fees for having the agreement explained by a solicitor.

How do I instruct a Solicitor?

At Ellis Jones our employment solicitors are experienced in dealing with settlement agreements and are happy to have a free initial discussion with you.

If you have a settlement agreement and are looking for an adviser, please call 01202 525333 or email rebecca.bennett@ellisjones.co.uk .