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

Our Employment Law specialists are recognised for delivering clear, effective advice on Settlement Agreements. With Lexcel and ISO 9001 accreditations and consistently strong client reviews, we act for individuals across a wide range of industries, offering practical guidance and support tailored to your situation.

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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
Paralegal
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, ISO 9001 accreditation and consistent 5* client reviews.

Employment

Settlement Agreement FAQs

Can a settlement agreement be used instead of dismissal procedures?2026-01-09T12:40:26+00:00

Yes. A settlement agreement can be offered instead of formal dismissal procedures, provided it is voluntary and legally compliant. It can be a simpler, lower-risk way to manage employee exits while avoiding lengthy disciplinary or redundancy processes.

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?2026-01-09T12:40:01+00:00

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

Do employees have to accept a Settlement Agreement?2026-01-05T12:04:52+00:00

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

What makes a Settlement Agreement legally valid?2026-01-05T12:05:12+00:00

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

Experienced Solicitors Providing Expert Legal Advice

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