Settlement Agreements can be complex and confusing. We will help you understand what is included in your Settlement Agreement, what the implications of signing the Agreement are and whether the Agreement is appropriate for you. If negotiation is required, we will work hard to ensure the Agreement is right for you.
Settlement Agreements have become increasingly common in the workplace, often used to settle potential claims and terminate the employment relationship. They can offer a clean break between an employer and an employee, with the employee usually offered an enhanced payment in exchange for giving up all claims they may have against their employer.
Settlement Agreements set out the terms of how an employment relationship will end and often include the following:
Giving up the right to make claims against your employer is important and you must be advised upon the implications of doing so.
Partner and Head of Employment Law
Partner in Employment Law
Comprehensive expertise in employment law – from drafting new contracts and day-to-day HR advice to pursuing or defending Employment Tribunal claims.
Partner-led advisory service – providing you with direct access to highly experienced employment law solicitors.
Experienced in advising both employers and employees – our approach enables us to provide holistic and meticulously crafted advice and support.
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Long-standing client relationships – a substantial amount of our new business stems from client referrals, a testament to the work we undertake.
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Our team of expert and experienced Employment Solicitors have years of experience in advising upon and negotiating Settlement Agreements, across a huge variety of industries and employers of all shapes and sizes. We can provide holistic expert advice, helping you to decide whether the Agreement is right from you. Where you are happy to proceed, the Settlement Agreement can be quickly concluded. However, if the Settlement Agreement is not right for you, we will work hard on your behalf to negotiate and achieve the best possible outcome.
We also have extensive experience in drafting and negotiating Settlement Agreements for employers. Please see more detail and the other services we offer to employers here.
Settlement Agreements can be offered for a variety of reasons, nearly always linked to the termination of employment.
Possible reasons could include: a breakdown in the employment relationship; a potential redundancy situation; ongoing disputes; a way of reinforcing any restrictive covenants you are subject to; or reinforcing confidentiality obligations.
Often Settlement Agreements come about by way of mutual agreement and are seen as the best way to achieve a clean break.
A Settlement Agreement will normally provide for the payment of monies owed to the employee up until the termination date, including salary, commission, bonus, and any payment due in respect of accrued but untaken holiday and unserved notice. The Agreement will typically record any additional termination payment being made, which in redundancy situations may include a statutory redundancy payment. There will also usually be a contribution towards the employee’s legal fees associated with taking advice on the Agreement.
Yes, for the Agreement to be valid you must take independent legal advice on it. One of our Employment Solicitors will be able to discuss the background of your employment, advise you as to whether you have any potential claims against your employer and advise you on the terms of the Agreement generally. An Adviser’s Certificate will usually need to be issued following our advice, which will often be referenced in the schedules of your Agreement.
Yes. Many employees who work with us are not happy with the terms they have been offered. Our Employment Solicitors can offer detailed advice on how and why to improve the terms of the Agreement and can negotiate on your behalf to achieve the best possible outcome. Over the years, we have been able to secure significant improvements to the terms of the Agreement and significant increases to termination and compensation payments.
A COT3 is a form of settlement typically used in relation to a specific dispute between an employer and an employee. They arise following the Acas conciliation process whereby an Acas conciliation officer will use a COT3 to record the details and terms of a settlement. They can cover any and all claims, however, often cover specific claims alongside future claims.
Unlike a Settlement Agreement, you do not legally require independent legal advice for a COT3. This does not prevent you from obtaining legal advice in respect of the terms of the COT3 and its implications, and our team has extensive experience in advising on COT3s as well as Settlement Agreements. Your employer may offer a contribution to legal fees too.
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