Settlement Agreements

What is a Settlement Agreement?

A settlement agreement (previously compromise agreement) is a legally binding contract between an employee and an employer which takes away the employee’s rights to make a claim in a court or tribunal. In exchange, the employer promises various payments, usually beyond what the employee is legally entitled to. Settlement agreements can be used to end an employment relationship; settle disputes whilst still employed or to settle claims already issued at the Employment Tribunal.

In order for a settlement agreement to be binding the terms of the agreement must be in writing, it must relate to a particular complaint/dispute and you must receive advice from a suitably qualified lawyer or authorised member of a trade union (who is identified in the settlement agreement), who needs to confirm that a contract of insurance in relation to the advice exists.

Strictly speaking, most solicitors can advise on settlement agreements but only a solicitor with experience in employment law can give expert advice on the full effect and meaning of the typical terms found in settlement agreements.


We have a team of highly experienced employment law solicitors who are all able to provide expert settlement agreement advice.

Please fill out our contact form or email on or call  01483 303636 to see how we can help you.

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