Settlement-AgreementsSettlement Agreement Advice

  • Advice for Employees and Employers
  • We are cost efficient
  • We can offer a quick turnaround
  • We are specialists in advising on settlement agreements


What are settlement agreements?

A Settlement Agreement (formerly known as a compromise agreement) is a written contractual document entered into and signed by employer and employee. The employer will generally agree to pay the employee a sum of money and in return the employee will agree not to bring any legal claims, such as unfair dismissal, relating to their employment and/or its termination against the employer.

Settlement agreements can be quite lengthy and complicated documents. If you are drafting a settlement agreement for an employee or you are an employee who needs independent advice on the terms, it is important to take advice from a specialist employment lawyer.

At Analysis Legal we advise on hundreds of Settlement Agreements each year for both Employees and Employers.

For Employees

As an employee, you have to receive advice from an independent legal advisor as without it a Settlement Agreement isn’t valid. All our employment solicitors are qualified and insured to advise on such agreements.

We will advise you on the terms of the agreement and in particular on what rights you are giving up in return for the settlement payment. If appropriate and you agree we will also negotiate on your behalf to ensure a more favourable settlement for you.

In most cases the employer will agree to make a contribution towards you legal costs in obtaining advice upon the Agreement. The amount of that contribution will differ from case to case but as a general rule the initial contribution that is offered may start at anywhere between £250 plus VAT to £500 plus VAT. This is usually sufficient to cover the cost of our advice, however if negotiations become protracted, our fees could exceed the contribution. In these circumstances we may be able to negotiate a higher contribution from the employer however if this is not possible you will be responsible for the balance.

For Employers

If your business is going through a restructure or you require legal advice to assist with a downsizing operation we can guide you through the process.

For commercial reasons, you may want to terminate an employment contract with an employee on agreed terms and we can give you cost efficient, pragmatic advice about the appropriate severance package and exit arrangements. We draft bespoke settlement agreements for a fixed fee.

We also offer a service where Employers want to exit a large number of employees via Settlement Agreements. We will come to your offices and independently advise all of your Employees on their individual terms over a set time period. This can make the process a lot more efficient for all concerned.