We specialise in helping employees and directors with settlement agreements
Whatever the circumstances, we will try to get the best outcome for you.
Settlement agreement - advice and sign off service
If you are happy with what is being offered to you, we offer same-day telephone appointments and easy sign-off service.
We’ll explain everything so you can be confident when agreeing your settlement.
All legal fees are paid in full by your employer. We don’t charge you anything extra.
Our process
Step 1
Send us your settlement agreement
Step 2
Advice
Step 3
Signing & billing
Your employer will pay all of your legal fees (usually around £500+VAT = £600).
Compensation Package - negotiation service
If your offer isn’t fair, or if we believe there’s room for improvement, we can negotiate directly with your employer to increase your compensation package.
When we get it increased, we’ll deduct an agreed modest percentage.
If we don’t get it increased, then there’s no cost to you.
FAQS
What is a settlement agreement?
A settlement agreement is a legally binding contract between an employer and an employee that ends the employment relationship on agreed terms. In return for a financial settlement, the employee agrees not to pursue legal claims such as unfair dismissal or discrimination.
We have dealt with hundreds of settlement agreements over the last three decades and have helped employees in Cheshire, Merseyside and West Lancs to get a fair deal which they fully understand.
Here are some FAQs on settlement agreements, based on our conversations with employees coming to the end of their employment:
What are the legal requirements for a settlement agreement?
To be legally valid in the UK, a settlement agreement must:
- Be in writing and relate to a specific complaint or legal claim.
- Confirm independent legal advice has been given from a qualified solicitor or adviser with professional indemnity insurance.
- Meets the conditions set out in legislation.
When can an employee seek a settlement agreement?
Settlement agreements can be offered or requested in situations such as:
- Redundancy or restructuring
- Workplace disputes or grievances
- Performance or conduct issues
- Discrimination or harassment claims
- As an alternative to legal proceedings
What are the advantages of a settlement agreement?
Settlement agreements offer several benefits:
- Financial compensation(tax-free up to £30,000)
- Avoid lengthy legal proceedings
- Confidentialityand protection of reputation
- Clarity on final pay, references, and post-employment restrictions
- Legal certainty and closure
How much money should I receive in a settlement agreement?
The amount varies depending on your circumstances. Factors typically include what job you do; your length of service; age; whether disciplinary, performance or grievances have been raised; what is the real reason behind the offer; and how important it is strategically to your employer.
What financial payments are included in a settlement agreement?
A settlement agreement may include:
- Salary and benefits up to the termination date
- Payment in lieu of notice (PILON)
- Accrued but unused holiday pay
- Compensation for losing your job
- Employer legal fee contribution (usually £350–£1,000 + VAT)
- Payments for confidentiality or restrictive covenants
Do I have to accept a settlement agreement?
No, you are not obligated to accept a settlement agreement. You have the right to negotiate the terms or reject the offer entirely. We can help you assess whether the offer is fair and advise on your options.
Can Employee Settlements negotiate the terms of a settlement agreement on my behalf?
Yes. Many employees don’t realise that the initial offer is often negotiable. We specialise in helping employees secure better financial terms and more favourable conditions.
How quickly can a settlement agreement be completed?
We can offer a same-day service and can often review and finalise agreements within 24 hours, depending on complexity and employer responsiveness.
Will my employer pay for my legal advice directly?
Yes. If you’re happy with your offer, we will advise you and then invoice your employer for all your legal fees.
What if I want more money from my employer?
We will do what we can to negotiate more money for you. We charge 15% (inc vat) of any extra amount we get for you. If we negotiate £20,000 extra for you, then you pay us only £3,000 and keep the extra £17,000.
Is the compensation I receive tax-free?
The first £30,000 of a genuine ex gratia payment (compensation for loss of employment) is usually tax-free. Other payments, such as notice pay or bonuses, are subject to tax and National Insurance.
What happens if I don’t sign the agreement?
If you choose not to sign, your employment will continue unless your employer takes further action (e.g. dismissal or redundancy). You may still have the right to bring a claim to an employment tribunal.
Can I still bring a claim after signing a settlement agreement?
No. Once signed, you waive your right to bring most employment-related claims. That’s why it’s essential to get expert legal advice before signing.
I’m really upset and don’t want to talk to my employer. What should I do?
That’s completely understandable. If you’re feeling overwhelmed, you don’t have to face this alone. We can speak to your employer on your behalf and handle all communication for you. Our role is to protect your interests and make the process as stress-free as possible.
Can I get a settlement agreement without having to negotiate directly with my employer?
Yes. Many employees prefer not to engage directly with their employer, especially if the situation has been distressing. Once you instruct us, we can take over the negotiation and communication, keeping you informed every step of the way.
What if I feel too anxious to even look at the agreement?
That’s okay. We’ll talk you through it in plain English and explain what everything means. You don’t need to read or understand legal jargon — that’s our job. We’ll make sure you know exactly what you’re agreeing to and that it’s in your best interest.
Will my employer know how I’m feeling?
No. Everything you share with us is confidential. We will only communicate what’s necessary to your employer to secure the best possible outcome for you. You’re in control of what is shared.
Can I take time to think about it?
Yes. You’re entitled to take time to consider your options. We’ll support you at your pace, whether you need to act quickly or take a few days to process things. Your employer should give you 10 days to consider their offer.