Professional legal services

in the City of London


020 3589 4099

Whilst many of our employee clients are highly paid company directors, City executives and professionals, we also act for employees from all walks of life. We also have considerable experience in partnership disputes, shareholder agreements and acting for persons who are self-employed.

Reasons for a Settlement Agreement

Your employer might have offered you a Settlement Agreement during a ‘Without Prejudice discussion’. This could be because your employer is proposing to make you redundant or because you have brought an employment tribunal claim or filed an internal grievance against your employer.

In order to fully understand what your employment rights are, you must seek independent legal advice prior to signing a Settlement Agreement. The Settlement agreement will not be valid unless you have not received legal advice on it and your lawyer has confirmed in writing that he or she has so advised.

Standard Terms of a Settlement Agreement

A Settlement Agreement will set out all the details for the termination of the contract including the payment terms and the providing of a reference. Additionally, it might stipulate that the terms agreed upon remain confidential. Settlement Agreements replaced Compromise Agreements. A key difference is that it is now possible for an employer to hand an employee a Settlement Agreement on a “Without Prejudice” basis but have an added “confidential” pre-termination discussion in order for it to not be possible for the discussion to be used in any subsequent tribunal proceedings. In order for it to be legally binding, the employee must seek independent legal advice.

How we can help

We pride ourselves in understanding the perspective of any individual or employee who may find themselves pitted against a large organisation or even a situation which is based, in reality, on animosity due to a clash of personalities. We always try to set out a clear strategy at the beginning of any matter. Not all employment cases result in contested proceedings (in fact, most cases settle) and if an employee comes to us with a draft settlement agreement with terms which are fair and reasonable, we endeavour to conclude matters quickly and seamlessly.


In most cases, your employer will contribute a sum towards your legal costs. In most case this will often be sufficient to cover all your legal costs in full. Where further advice and negotiation is needed, we are happy to discuss various ways of funding your case. Wherever possible we will work carefully with you to ensure that you do not waste unnecessary time or money on Tribunal proceedings by negotiating with your employer to achieve an appropriate settlement and protect your reputation.

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How we can help

If you are currently employed and in need of advice relating to Settlement Agreements or worried about a threat of being dismissed or experiencing any other kind of problem related to your employment, please contact us today.

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