Settlement Agreements

Settlement Agreements


A Settlement Agreement, formerly known as Compromise Agreements, can be proposed by either an employee or an employer with a view to resolving a problem or indeed ending the employment. It is more common for a Settlement Agreement to be used to end an employment. 

Settlement Agreements are a useful tool, whereby from an employer’s point of view, there is concern regarding conduct, attendance, performance or general attitude of an employee. From an employee's perspective, it may be that there are concerns around the role they are undertaking, the environment of their employer, but do not consider that such concerns amount to legal arguments for unfair dismissal, bullying etc. In these circumstances of what can be described as almost a breakdown of a relationship, one option is to offer a settlement agreement to bring the employment relation to an end.

For employers, this is often a useful tool to use before proceeding to the next stage of a disciplinary procedure. A Settlement Agreement is often swift and whilst there is a settlement figure of course to include, it is most cost effective than pursuing a disciplinary procedure or indeed of course risking dismissing an employee ineffectively.

There are strict rules to ensure that a Settlement Agreement is valid however, if used correctly, not only can it be a good outcome for the employee, but it can also protect an employer from the risk of potential claims from an employee. Whilst there is something known as an Entirety Agreement Clause contained within the Settlement Agreement, Settlement Agreements cannot cover matters such as personal injury or loss of pension.

We offer solid Settlement Agreements to resolve and quickly become complicated matters swiftly and effectively but also reassurance issues cannot resurface later. Along with the Settlement Agreement, we offer practical advice to suit your circumstances and the goal you ultimately wish to achieve.

Our prices are transparent to allow you to budget and are as follows: - 

For Employers

Package 1

30-minute telephone or in person (at our office) consultation to review the facts of the case and explain the Settlement Agreement and how best to use same.

Review of written instructions and evidence received from you.

Drafting of a Settlement Agreement tailored to your needs.

Drafting of a letter to initiate Settlement Agreement to provide to the employee.

Drafting of a form for the employee to utilise when obtaining their own independent service (again taking control to protect you).

Costs £650.00 plus VAT

  • Package 2

Review of written instructions relaying the facts from you.

Drafting a Settlement Agreement.

A brief telephone call (around 15 minutes) discussing any questions relating to the Settlement Agreement.

Costs £550.00 plus VAT 

Package 3

30-minute telephone or in person (at our office) consultation to review the facts of the case and also explain the Settlement Agreement and how best to use same.

30-minute consultation to discuss any questions you may have followed delivery of Settlement Agreement to the employee.

Checking of documents upon signature of the Settlement Agreement to ensure that these are valid.

Review of written instructions and evidence received from you.

Drafting of a Settlement Agreement tailored to your needs.

Drafting of a letter to initiate Settlement Agreement to provide to the employee.

Drafting of a form for the employee to utilise when obtaining their own independent service (again taking control to protect you).

Costs £700.00 plus VAT 

Package 4

30-minute telephone or in person (at our office) consultation to review the facts of the case and explain the Settlement Agreement and how best to use same.

30-minute consultation to discuss any questions you may have followed delivery of Settlement Agreement to the employee.

Checking of documents upon signature of the Settlement Agreement to ensure that these are valid.

Review of written instructions and evidence received from you.

Drafting of a Settlement Agreement tailored to your needs.

Drafting of a letter to initiate Settlement Agreement to provide to the employee.

Drafting of a form for the employee to utilise when obtaining their own independent service (again taking control to protect you) – to be delivered by us to the employee.

This practice to take over all discussions with employee regarding the Settlement Agreement including telephone calls, written correspondence and any meetings required.

Costs £1,200.00 plus VAT 

For Employees

Package 1

To check reasonableness and validity of Settlement Agreement.

Signature of an additional form to confirm above-mentioned advice has been given.

£300.00 plus VAT

Package 2

Telephone or in person meeting to discuss settlement sum in detail and to discuss what the Settlement Agreement means.

Signature of an additional form to confirm above-mentioned advice has been given.

£650.00 plus VAT 




Director & Solicitor

Rachael James

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