Settlement agreement solicitors in London

If you are offered a settlement agreement by your employer for any reason you are entitled to and must receive the protection of independent legal advice before signing. 

We are highly experienced, dealing with hundreds of settlement agreements a year, and efficient in reviewing and advising on settlement agreements, providing practical independent legal advice either face to face or remotely, whichever is easier for you.

What are settlement agreements and why do employers offer them?

Employers do not want the the risk of employment law related claims.  By entering into a settlement agreement (or compromise agreement as they used to be called) employees waive (give up) employment related claims such as unfair dismissal and unfair selection for redundancy.

How much compensation is typical?

Employees can generally expect financial compensation to encourage them to sign off on the agreement. Compensation varies but is typically equivalent to 2-3 months salary, tax free but can be much more depending upon the legal strength of your particular case and in practice commercial factors which create the appetite to settle.  Compensation is in addition to notice pay.

Why do employers need legal advice?

The employer has to ensure, to comply with legislation, that you have taken independent advice from someone who is only acting for you.  We are qualified to handle this for you.

If your employer is paying for the independent legal review of your settlement agreement we do not charge you.

How will legal advice on a settlement agreement help?

Our review covers discussing any claims that you may have and will be required to waive under the settlement agreement. Being independent we do not act for your employer.  Discussions with you are in total confidence. Sometimes clients want to try negotiating a better compensation package. We will advise on whether we think this is a good idea and where it is, we negotiate for clients.

We do offer expertise in related areas such as post termination restrictions and/or your position under share schemes. Additional work will be chargeable - we will explain what you need and what the cost is before incurring any fees.

Settlement agreements are final

There is no going back once you have signed your settlement agreement. The settlement agreement provides for full and final settlement of all claims against the employer and money due to the employee.  You have to make sure you know what you are doing before you sign your settlement agreement.  There is no "cooling off" period.

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Settlement agreement compensation

Compensation offered under a settlement agreement is usually calculated under 3 parts:

• Your contractual entitlements - such as notice pay, accrued holiday, bonuses, etc;
• Redundancy pay (if applicable); and
• Compensation for loss of employment or directorship – this is where there may be scope for negotiation.

The first £30,000.00 of compensation can be paid tax free in many cases.

It is not nice being presented with a settlement agreement and most people are unsure of their position until they have spoken to us.  Our review will put your mind at rest.