Settlement agreement solicitors in Leicester

A settlement agreement is a contract in which an employee agrees not to bring claims against their employer, usually in return for a payment. For it to be legally binding on statutory employment claims, the employee must receive advice from an independent adviser (usually a solicitor), who signs a certificate confirming they’ve given it.

What the solicitor checks

• What you’re giving up. Settlement agreements usually waive all possible claims, so the adviser will ask about your circumstances to see whether you have claims worth more than the offer.
• The money. How the payment is split between contractual payments (such as notice pay and holiday) and a termination payment, and whether the tax treatment is right.
• Restrictions. Confidentiality clauses, non-disparagement clauses and any post-employment restrictions on working for competitors or approaching clients. A settlement agreement can’t stop you making a protected disclosure (whistleblowing) or reporting a crime.
• The reference. An agreed reference is common and worth asking for.
• Practical terms. Dates, return of company property, and what happens to pension contributions, bonuses and share options.

Settlement agreements and ‘protected conversations’

Employers sometimes raise a settlement agreement in a ‘without prejudice’ or ‘protected’ conversation, which usually can’t be relied on later in a tribunal claim. If you’ve been approached this way, you don’t have to agree to anything on the spot.

Choosing an adviser

Many solicitors deal with settlement agreements by phone or video, so you don’t need to use a firm near your employer. You’ll want someone who regularly advises employees, and who will tell you plainly whether the offer is reasonable. Employers can’t insist you use a particular adviser.

Common questions