Settlement Agreement or Compromise Agreement

Are you in negotiations with your employer regarding the ending your employment, and needing to sign a ‘Settlement Agreement’?

We appreciate that this is a stressful time for you. Often, the situation may have developed rapidly, and you may have concerns about the future.

You’re in the right place! ILA-Connect is the UK’s leading specialist provider of Independent Legal Advice.

Our panel employment solicitors are industry-leading experts, at the pinnacle of their field.

We’ve helped thousands of people obtain clear, concise and accurate legal advice on their Settlement Agreements, and in many cases, our panel solicitors can improve your settlement offer.

What’s more, our panel solicitors provide the legal advice to you as quickly as possible and in the comfort of your home or office, via video conference call e.g. Zoom, Skype, Facetime or WhatsApp video calling. Everything is done online, including signing documents, which makes it as quick and easy as possible.

£250 plus VAT payable by the employer

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Evening and weekend appointments available

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Why do I need a Settlement Agreement?

If your employment is being terminated by your employer, you may have potential claims against your employer (for example redundancy or wrongful dismissal) and it’s therefore common practice for the parties to enter into a “Settlement Agreement” also known as a “Compromise Agreement”, in which the employer agrees to make a severance payment to the employee, and in return, the employee surrenders any employment tribunal claims they may have against that employer.

The severance payment is usually tax-free, meaning you get to keep the entire amount.

No matter what it says in a Settlement Agreement, it’s important to remember that the law prevents employers from settling some types of claims including pension-related claims and personal injury claims.

Why do I need to seek Independent Legal Advice?

It is actually a legal requirement that you have had Independent Legal Advice with regards to the Settlement Agreement, otherwise, it will not become legally binding.

Usually, your employer will pay your legal fees.

Negotiating your Settlement

If you are happy with your settlement offer, fair enough, our lawyers won’t push you into negotiating if you don’t wish to.

With that said it’s important you get the best deal available, including a fair severance payment, a good reference, a preferable termination date (if a future termination is proposed) any other benefits you believe you are entitled to.

It’s also important that you understand the amount you might expect to receive if you were to make a tribunal claim, to ensure you are not receiving less than your entitlement.

Our lawyers can often help you to negotiate a better deal, and so after your advice on the Settlement Agreement, you will be able to further instruct your solicitor to contact your employer (or its solicitors) on your behalf.