For Employees
We advise on the terms and implications of settlement agreements, assess the compensation on offer, and negotiate improvements where needed. Employers typically contribute to legal fees, and we keep costs transparent throughout.
For Employers
We draft and negotiate settlement agreements for employers, producing documents that resolve employment disputes efficiently and cost-effectively. Where we advise multiple employees from the same business, we can deliver significant time and cost savings.
FAQs
A settlement agreement is a legally binding contract between an employer and employee that resolves a dispute or terminates employment. By signing, the employee gives up the right to bring claims against the employer in an employment tribunal. In return, the employer typically pays a sum of money. The employee must receive independent legal advice before signing.
Yes. A settlement agreement is only legally valid if the employee has received independent legal advice on its terms from a qualified adviser. Employers typically contribute to the cost of this advice. We charge a fixed fee starting from £500 plus VAT to advise employees on settlement agreements.
The first £30,000 of a settlement payment relating to the termination of employment is generally exempt from income tax and National Insurance. Payments above that threshold are taxable. Payments relating to unpaid salary, holiday pay, or benefits are always taxable. We advise on the tax treatment of settlement payments as part of our fixed-fee service.
Yes. Settlement agreements are negotiated documents. Common areas for negotiation include the amount of the payment, the reference wording, confidentiality obligations, restrictive covenants, and the treatment of any share options or equity. We advise employees on what is reasonable to request and negotiate on their behalf where appropriate.