If your employer has offered you a settlement agreement, you may be asked to make important decisions about your employment, finances and future career within a relatively short period of time. Before signing, it is important to understand exactly what you are agreeing to and whether the overall package properly reflects your circumstances.

A settlement agreement is a legally binding agreement that can be used to resolve a workplace dispute or agree the terms on which employment will end. In return for agreed payments or other terms, you will usually agree not to pursue specified legal claims against your employer. Settlement agreements can also sometimes be used without bringing the employment relationship to an end.

Our Employment & HR solicitors advise employees, directors and senior executives on settlement agreements. We can explain the proposed terms, identify issues that require further consideration and, where appropriate, negotiate with your employer to seek an improved financial package or other changes before you sign.

We can advise whether you have received an initial offer or already have a draft settlement agreement requiring independent legal advice.

Our services include:

Signing a settlement agreement usually means giving up your ability to pursue specified Employment Tribunal or court claims against your employer. Independent advice is therefore an important safeguard and is one of the legal requirements for a valid settlement agreement.

Our role goes beyond simply explaining what individual clauses mean. We consider the agreement in the context of what has happened during your employment, your contractual entitlements, the potential legal claims available to you and what you want to achieve from your departure.

Where negotiation is appropriate, our Employment & HR team can deal directly with your employer or their legal advisers on your behalf. Our focus is on helping you reach an outcome that allows you to move forward with clarity while avoiding unnecessary delay, dispute or cost.

We provide:

• Clear explanations of settlement agreement terms
• Advice on the rights and claims you are being asked to waive
• Assessment of financial and non-financial terms
• Strategic settlement negotiations where appropriate
• Advice on notice, holiday, redundancy, bonus and commission payments
• Reviews of confidentiality and restrictive covenant provisions
• Support negotiating references and departure arrangements
• Practical advice focused on your future career and priorities
• Efficient completion where the terms are already acceptable

If you have been offered a settlement agreement, obtaining independent advice can help you understand what you are giving up, whether the proposed terms are appropriate and whether there may be an opportunity to negotiate a better outcome.

Our Employment & HR solicitors can review your agreement, explain its practical implications and advise on the financial and non-financial terms. Where appropriate, we can also negotiate directly with your employer or their advisers on your behalf.

To discuss your requirements, contact us by emailing employment@dtmlegal.com or calling 01244 354 800 / 0151 321 0000.