Settlement agreements

If you have been offered a settlement agreement then you will need to take independent legal advice from a lawyer on your rights. We can take you through the settlement agreement, advise you on its terms, and look to negotiate the best possible deal for you.

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What is a settlement agreement?

A settlement agreement is a contract between an employer and an employee, under which the employee agrees not to sue the employer in respect of employment law claims they may have (for example, claims for unfair dismissal, constructive dismissal, bullying, harassment etc.). It is a means for the employer and the employee to settle a dispute rather than start a legal claim – this can save both the employer and the employee stress, time, money, and risk (i.e. for the employee, the risk of bringing a claim and not succeeding with it; and for the employer, the risk of being sued and losing the claim).

In order for a settlement agreement to be legally effective it must meet certain criteria: among other criteria, it has to be in writing and the employee must take independent legal advice on the contents and meaning of the agreement.  One of our employment lawyers can help you with this.

Did You Know?

Under the ACAS Code of Practice on Settlement Agreements you should receive up to 10 days to consider the terms of a settlement agreement

Can I get a settlement agreement?

If you have a dispute with your employer then you have a number of routes available to you to resolve that dispute: you can file a formal grievance with your employer, you can issue a claim in the Employment Tribunal, or you can seek to try and settle your potential claims against your employer.

If you want to try and settle your case then your best bet will normally be to put a settlement offer to your employer: generally, unless you ask your employer whether they’re willing to settle your case you won’t know whether they’re willing to (or how much they’re willing to offer for a settlement agreement). It is sometimes the case, however, that you may need to file a grievance against your employer and/or threaten to bring an Employment Tribunal claim against them before they’re willing to engage in settlement talks – different situations require different strategies, and this is how we can help you: our expert employment lawyers can help you to best understand your situation, what your case is worth, and how to strategise to achieve that goal.

If you’ve been offered a settlement agreement, or want to try and get a settlement agreement on the table, Your Employment Lawyers can help advise you on your situation and on the settlement agreement terms.

Did You Know?

The law says that you must receive legal advice from an independent legal adviser (such as an employment lawyer) in order for your settlement agreement to be valid.

How much can I receive under a settlement agreement?

At Your Employment Lawyers we’ll look at each case on an individual basis to make sure that you get the help that’s right for you and your situation. Every settlement agreement is different, based on different situations, and this can affect how your settlement agreement needs to be dealt with.

You can, however, try our free settlement agreement calculator for a rough idea of the amount you might receive under a settlement agreement.

Your solicitor will take many things into consideration when advising you on a settlement agreement and creating the appropriate negotiation strategy for you. Your lawyer will normally factor in the following considerations:

  • The factual background of your case
  • What potential Employment Tribunal claims you have
  • How unreasonable the treatment you have been subjected to is
  • How severely you have been affected by the conduct complained of
  • How long it will take you to find a new job

Unless your solicitor has started negotiating on your behalf they won’t be able to give you an exact figure as to what can be negotiated under a settlement agreement. With decades of experience, our settlement agreement calculator can give you an estimate of the amount you could receive.

Your solicitor will also look at whether there are any other Employment Tribunal claims that you could bring, in addition to your unfair dismissal claim. If you have a discrimination claim as well as an unfair dismissal claim then you may be entitled to additional compensation.

We like to make the process as simple and straightforward as possible. If you’re seeking to get advice on a settlement agreement you can start to get advice on this using our online tool.

Find out more about getting advice on a settlement agreement

Why should I choose Your Employment Lawyer to advise on my settlement agreement?

We’re one of the only employee-only employment law advice specialists in the UK – helping people just like you, who want to receive legal advice on settlement agreements, for over 10 years. Without comprehensive expertise and know-how, we can advise you on your settlement agreement and, if you want, negotiate it, quickly and easily.

Not ready to call us? Why not read more about settlement agreements below.

Once you are ready, our friendly team of skilled employment law advisers are here to help. We’ll talk through your settlement agreement and assess your situation – but it will always be your choice whether you want to hire us to advice you on your agreement.

If you want to go ahead and instruct our employment solicitors to advise on your settlement agreement then we’ll discuss funding options with you and next steps.

We’ve already helped thousands of people with their settlement agreements – people like [INSERT NAME], who was sexually harassed in the course of her employment and settled her potential Employment Tribunal claims. Hear [INSERT NAME]’s story below.

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Find out what people who chose Your Employment Lawyer have to say

How do I receiving advice on my settlement agreement?

To find out if you can make an unfair dismissal claim, you can use our claim online tool, which will be able to tell you an estimated compensation amount for your unfair dismissal claim, and whether you can start your claim online. We try to make the claiming process as easy and as stress-free as possible, we’ll never rush or pressure you into starting a claim either and we take everything at your own pace.

How much getting legal advice on a settlement agreement cost?

Our specialist settlement agreement solicitors will consider the appropriate funding arrangement for your claim, and will normally look at funding on the following bases:

  • Hourly rate
  • Fixed fee
  • No win no fee – this means that, if you should be unsuccessful with increasing the value of your settlement agreement, you’ll pay nothing

Our costs will normally be covered by your employer, as they will normally offer a legal fee contribution towards the cost of you taking legal advice on the settlement agreement (your employer will normally contribute somewhere between £350 plus VAT and £500 plus VAT towards the cost of taking the advice, but it can be as high as £1,000 plus VAT in some cases).

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Frequently asked questions

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