We provide prompt and clear advice on settlement agreements.  

A settlement agreement is a contract between an employee and an employer to record how the terms of employment will end or a dispute will be resolved. Those terms are usually that the employer will pay a sum of money in return for the employee giving up rights to make the employment-related claims set out in the agreement. 
 
An agreement is a sensible way of resolving a dispute, but it is important that you seek legal advice. There are rules for settlement agreements and if you fail to follow them, the arrangement will be unenforceable. 
 

Settlement agreements for employees 

If you are an employee, we help you understand the meaning and effect of the settlement agreement and its implications for your legal rights. 
 
Your employer will almost always offer a contribution towards your legal costs for advice. In most cases, this contribution is enough to cover the cost of the work we do. This does not mean that we have any obligation to your employer. If we are instructed by you, we are your solicitor when giving advice, not your employer’s. It doesn’t matter who pays for the advice. 
 
If you are not happy with the terms of the agreement, we can negotiate these for you. Your employer would not cover the cost of this work but, if successful, the improved terms are likely to cover the cost. Negotiation is charged at our hourly rate.  

Settlement agreements for employers 

If you are an employer, we will make sure you meet your legal obligations and help you to reach an agreement that works for your business.  
 
We prepare bespoke settlement agreements for your case and advise on how best to protect your interests. This includes advice on the amount of the settlement if a payment is to be made, and how to ensure that the agreement achieves everything you want it to. 
 
If your employee wishes to negotiate the terms of the agreement, we can represent you in discussions.  

When are settlement agreements used? 

To end a disagreement between an employer and an employee at the end of employment. 
To reach a negotiated compromise about how and on what basis an employee will leave. 
Settlement agreements are becoming increasingly common in redundancies.  

The rules on settlement agreements are: 

The settlement agreement must be in writing 
The settlement agreement must contain certain information stipulated by law 
An employee must receive advice on the meaning and effect of the settlement agreement by someone qualified to do so such as Spencer Shaw Solicitors 
The advice must include the effect of the settlement agreement on an employee’s ability to make a claim to an employment tribunal. 

Non disclosure agreements 

In employment law, settlement agreements are increasingly including non-disclosure agreements (NDAs) and confidentiality clauses. These terms are generally used to protect business interests by preventing valuable knowledge being shared publicly or to prevent damage to a company's reputation by ensuring that the public do not find out about sensitive incidents. 
 
Misuse of NDA's has led to stricter regulation of the clauses and poor public perception. If you plan to include an NDA in your settlement agreement, you should receive legal advice beforehand to ensure that you use the clause correctly and ethically.  
 
Seeking advice and support on concluding a settlement agreement with my employer, Ian immediately responded to my online enquiry and seamlessly guided me through the agreement process to a successful conclusion. 
I would have no hesitation in recommending Spencer Shaw Solicitors. 
 
Darrin1967 

Get in touch 

Do you have a legal matter you'd like to discuss with us? Get in touch using the details below or use the form here and a member of our team will be in touch to discuss your enquiry. 
Phone: 0121 452 5130 
Address: Spencer Shaw Solicitors Limited 
Vancouver House, 111 Hagley Road, Edgbaston, Birmingham B16 8LB 
Opening hours: 
Monday - Friday 9:00AM - 5:00PM 
Saturday, Sunday & Bank Holidays - Closed 
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