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  • Overview

    This page gives an overview of our employment settlement agreement services for employees. If you're an employer looking for professional advice on employment law, please visit our for your businesses page.

    What is an employment settlement agreement?

    A settlement agreement is a document that records the terms on which an employer and employee have agreed to terminate the employee's employment or settle a dispute. It will need to deal with all aspects of your employment.

    It is a legal requirement that employees obtain independent legal advice before entering into a settlement agreement. Otherwise, it is not legally binding.

    Benefits of using our employment lawyers for settlement agreements

    Employees do not have to agree to a settlement agreement from employers. They do have the right to negotiate the terms of any agreement. Once you sign a settlement agreement, it is legally binding, and you cannot pursue any claims through the courts or an Employment Tribunal. We can advise you on your settlement agreement and negotiate more favourable terms for you, if you have not been properly compensated.

    How our settlement agreement solicitors can help:

    As well as advising you on the fairness of the financial terms offered to you, we can advise you on:

    • Your prospective claims against your employer and the value of those claims
    • Whether signing the agreement is in your interests and the best course of action for you
    • The consequences of your signing the agreement or not signing it
    • Your entitlement to salary and benefits (for example, pension, company car or private medical insurance), under your contract of employment, which a settlement agreement should cover
    • What an “ex-gratia” or termination” payment is and what it is aimed at compensating you for
    • Any tax due on the payments to be made
    • Negotiating a quick resolution
    • Facilitating an amicable exit.


    For further information please contact one of the team.

    Fees and employer contribution

    A settlement agreement will usually include a contribution from you employer towards the costs of getting advice on the document. Employers typically offer between £250 and £500 plus VAT. They are not obliged to cover all your costs, only the costs of advising on the terms of the agreement. 

    Sometimes, if the agreement is straight forward and there are no issues with it or the settlement package, then our lawyers can advise you on its contents and sign the adviser’s certificate to make it valid - for somewhere in the region of £500 to £900 plus VAT depending on the seniority of the employment lawyer you engage to advise you. 

    Sometimes, when there are negotiations on the terms of the agreement, such as the financial package, our fees will be higher and tend to start from £750 plus VAT.  Employers are often amenable to being persuaded by you or us to increasing the contribution. If the costs of instructing us are covered by your employer in full – we will raise an invoice to you but (payable by your employer). This invoice will be sent to your employer to pay direct to us. However, if:

    • You do not accept the package and settlement agreement; or
    • Your employer will not pay all of your legal costs; 


    then we will invoice you for our costs agreed with you and you will be liable to pay us. 

    If your employer defaults on the invoice raised and payable by them, you, as our client, will remain liable for our costs.   

    Find out more about:


    Client stories

    Our client was, without warning, told his employment was being terminated and handed a settlement agreement. We advised him on the process, the arguments to advance and the level of compensation to argue for. He negotiated a 50% increase and for his employer to pay his legal fees. The matter was resolved within a couple of days.

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    Thomson Snell & Passmore assist in reaching a commercial settlement

    Nick Hobden was contacted by a disability charity. One of the client’s employees was dismissed following long term sickness absence.

    Advising a headteacher on whether action taken so far could give rise to a claim of procedural fairness

    Nick Hobden was contacted by a headteacher of a specialist school when an employee (a speech and language therapist) did not return to work after the Christmas break. The employee gave notice and was signed off as sick by her GP for work-related stress for the duration of her notice period.

    Acting for an individual sued by his previous employer

    Our client was sued by his previous employer for £277,240 for breach of express and implied terms of his employment contract. In particular, it was alleged that he had breached his duties of faith and fidelity, had taken confidential information and had approached and solicited clients in competition with his previous employer as well as enticing five employees to leave with him.

  • Latest Updates

    Employment status

    Despite the Coronavirus, there has been an important case recently in relation to employment status concerning a site Foreman and Bricklayer in the construction industry.

    Huge hike in compensation payments for hurt and upset employees

    With effect from the 11 September 2017 there will be a very significant rise in compensation awards for injury to feelings or psychiatric injury in discrimination cases.

    Significant court case continues

    On 26 July 2017, the UK Supreme Court ruled that the employment tribunal fees regime, introduced in 2013, was unlawful. The government had already undertaken that if it lost the case it would refund the fees paid over the last four years.

    When a gift is a gift and not a bribe

    When a gift is a gift and not a bribe.  Nick Hobden considers the law on giving and receiving gifts in the workplace.

    Law firm network draws on family law to create collaborative approach to employment disputes

    Four law firms have joined forces to launch Collaborative Employment Law (CEL), a group aiming to bring a novel mediated approach to employment disputes as an alternative to litigation, modelled on a technique developed by family lawyers.

Newsletter Sign Up

I would like to receive newsletters, event invitations and publications from Thomson Snell & Passmore by email on the following topics (tick all those that apply) and consent for my data to be processed for this purpose.

We respect your privacy and want news to be relevant. To either, click here or update your preferences by emailing us at info@ts-p.co.uk. Your personal data shall be treated in accordance with our & .

Get In Touch

By submitting an enquiry through 'get in touch' your data will only be used to contact you regarding your enquiry. If you would like to receive newsletters from Thomson Snell & Passmore please use the separate form below.

Clearly understood the issues, explained to me what I was not really familiar with and confirmed that my understanding of certain aspects was indeed correct.

Client

Clear concise advice and the negotiated removal of a number of unpleasant clauses to my benefit.

Client

Provided high quality advice!

Client

All the advice given was structured toward the type of business that we are.

Client

Very prompt and responsive both during and after business hours, to successfully progress the case to agreement within a short time period and to schedule

Client

I came away understanding the background to the advice given, and I am happy that this takes into account my best interests

Client
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