Employment

Settlement Agreement

Settlement Agreement

At Franklins Solicitors, our expert Employment Law team provides clear and practical advice on Settlement Agreements. Whether you have been offered an agreement by your employer or are considering one as a business, we ensure you fully understand your rights, obligations, and the financial and legal implications before signing.

At Franklins Solicitors, our expert Employment Law team provides clear and practical advice on Settlement Agreements. Whether you have been offered an agreement by your employer or are considering one as a business, we ensure you fully understand your rights, obligations, and the financial and legal implications before signing.

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Settlement Agreement Expertise You Can Trust

We’re recognised as one of the most accredited firms in the Midlands, holding Lexcel and ISO 9001 accreditations. Our employment law specialists act for employees and employers across a wide range of industries, providing fast, reliable, and effective legal advice on Settlement Agreements.

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What Is a Settlement Agreement?

A Settlement Agreement (formerly called a Compromise Agreement) is a legally binding contract between an employer and an employee. It usually involves:

  • The employee agreeing not to pursue legal claims against the employer

  • The employer making a compensation payment to the employee

  • Both parties bringing the employment relationship to an agreed end

Settlement Agreements can also include other terms such as references, confidentiality, and restrictions on future employment.

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Why Do Employees Enter Into Settlement Agreements?

Settlement Agreements are typically used when:

  • There is a dispute between employer and employee

  • An employment relationship is coming to an end on agreed terms

  • Both parties want a clean break, avoiding the uncertainty of a tribunal claim

In return, employees usually receive compensation and other agreed benefits.

Speak to our Employment Team

If you need advice about your rights at work or support with a dispute, we are ready to help.

Contact

Sara Marshall

Associate Partner

Georgia Harris

Solicitor

Charlotte Dixon

Trainee Solicitor

Employment

Why Choose Franklins Solicitors for
Settlement Agreements?

Fast Turnaround

We regularly conclude Settlement Agreements quickly and efficiently.

Independent Legal Advice

Ensuring your agreement is valid and your rights are protected.

Practical Compensation Advice

Assessing whether the offer is fair and negotiating improvements.

Support for Employees and Employers

Advice on both entering and drafting Settlement Agreements.

Trusted Reputation

Decades of employment law experience with Lexcel and ISO 9001 accreditation.

Employment

Settlement Agreement FAQs

Are there benefits beyond money?2025-09-04T09:51:45+01:00

Yes. Agreements can include references, confidentiality protections, and the removal or modification of restrictive covenants.

When should I consider using a Settlement Agreement?2025-09-02T10:25:51+01:00

When ending employment due to redundancy, disputes, performance issues, or where you want a clean break with reduced legal risk.

Can non-financial terms be included?2025-09-02T10:25:28+01:00

Yes — agreements often include confidentiality, agreed references, and restrictions on future competition.

What is the benefit of a Settlement Agreement for employers?2025-09-02T10:24:30+01:00

It provides certainty, prevents future claims, and avoids tribunal cost

Do employees have to accept a Settlement Agreement?2025-09-02T10:24:46+01:00

No — employees can negotiate or reject the agreement, but most agreements provide a financial incentive to accept.

What makes a Settlement Agreement legally valid?2025-09-02T10:25:10+01:00

The employee must receive independent legal advice, and the agreement must meet statutory requirements.

Experienced Solicitors Providing Expert Legal Advice

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