Settlement Agreements For Employees
If you have been offered a settlement agreement by your employer, it is crucial to fully understand the legal and practical implications before signing. These agreements are legally binding contracts—usually in exchange for a financial settlement, you agree not to pursue any employment-related claims against your employer.
At Bright Solicitors, we provide clear, strategic advice on the terms of your settlement agreement, protecting your rights and ensuring the deal reflects your true value—particularly in complex or sensitive exits involving senior executives, directors, and professionals in regulated roles.
What Is a Settlement Agreement?
A settlement agreement (formerly known as a compromise agreement) is often used to bring an employment relationship to an agreed end. In most cases, it includes:
- A financial settlement or severance package
- Waiver of claims such as unfair dismissal, discrimination, or breach of contract
- Confidentiality clauses and non-disparagement obligations
- Restrictive covenants such as non-compete, non-solicitation, non-dealing, and non-poaching clauses
- An agreed termination date and any outstanding benefits or entitlements
Importantly, for the agreement to be legally valid, you must receive independent legal advice, and in most cases, your employer will pay or contribute toward the legal fees.
Some settlement agreements—especially those involving senior positions—may also cover:
- Unpaid bonuses or incentive schemes
- Regulatory matters for professionals in industries such as finance, healthcare, or education
- Director service agreements and removal from Companies House
- Partnership arrangements or shareholder agreements
- Enhanced or complex restrictive covenants tailored to the business
We guide you through every clause and potential risk, ensuring your agreement supports your next steps.
Common Reasons for Settlement Agreements
Employers use settlement agreements for many reasons, including:
- Redundancy or company restructuring
- Performance or conduct concerns
- Workplace disputes or grievance resolution
- Long-term absence due to illness or health issues
- Breakdown in the employment relationship
- Exits following a merger, acquisition, or change in control
No matter the reason, our role is to ensure your exit is fair and that your rights are protected.
How We Can Help You
We offer quick, straightforward, and legally sound advice on all types of settlement agreements. Our services include:
- Legal Review of the Agreement – We ensure that the terms are fair, legal, and in your best interest.
- Advice on Your Rights – We explain what you’re agreeing to and whether you’re giving up any important legal claims.
- Negotiation Support – If appropriate, we negotiate for a better compensation package, extended notice, or reference terms.
- Fast Turnaround – We understand these agreements are often time-sensitive, and we work to meet your deadlines.
- Transparent Fees – In most cases, your employer will contribute to or fully cover the legal fees for advice on the agreement.
Benefits of Choosing Bright Solicitors
- Specialists in Employment Law – We have extensive experience advising employees on settlement agreements across all industries.
- Client-Centred Approach – We prioritise your needs and make sure you understand everything before signing.
- Quick, Professional Service – We work efficiently and thoroughly, without ever compromising on quality.
- Strong Negotiation Skills – We fight for better outcomes where the offer does not reflect your entitlement or contribution.
- Confidential & Supportive – We provide a safe space to discuss your situation and guide you through the next steps.
Get In Touch
If you’ve been offered a settlement agreement, contact our employment law specialists at Bright Solicitors. We’ll guide you through the process, ensure the terms are fair, and help you move forward with confidence. Alternatively, please contact 01752 388883 to speak to a member of our team.
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