Settlement Agreements
About employment settlement agreements
Thompsons has a specialist unit of settlement agreement solicitors providing workers with expert advice on the meaning of the contents of a settlement agreement and the implications of signing one.
In order for a settlement agreement to be valid, it is a legal requirement that the worker obtains advice from a relevant independent advisor as to the meaning and the effect of signing the agreement. Where a settlement agreement is proposed to resolve a dispute between an employer and a worker, this may also include a termination of the worker's employment.
How our settlement agreement solicitors can help you
If you find yourself being asked to sign a settlement agreement, Thompsons’ solicitors are able to assist. Simply complete our online settlement agreements form to start the process.
A member of the settlement agreement unit will contact you to confirm receipt of the request for advice, and the relevant documents, and to arrange a telephone appointment between you and a specialist settlement agreement solicitor. During that call we will discuss any legal fees that will apply and run through what will happen next.
Once advised, and if you are happy to proceed with your settlement agreement, we will ask you to sign and return the agreement to your lawyer to certify; we will then send it on to your employer for final signature.
If you require assistance with completing the form, or have a query relating to an employment settlement agreement you have received, please call 01752 521 888.
Trade union members can access this service via a union representative.
FREQUENTLY-ASKED QUESTIONS ABOUT SETTLEMENT AGREEMENTS
1. What is a settlement agreement?
A settlement agreement, formally known as a compromise agreement, is a legal contract used by employers to set out terms and conditions agreed by an employee to end an employment relationship or resolve a dispute. They usually involve an employee receiving a payment in return for giving up their rights to bring about an employment rights claim against the employer.
2. Why have I been asked to sign a settlement agreement?
Your employer may have asked you to sign an employment settlement agreement to record your agreement to not pursue legal or court action against them following an employment issue or the ending of the employment relationship.
3. Do I need legal advice to make a settlement agreement?
Yes, it is a legal requirement. Settlement agreements must be reviewed and signed by a qualified lawyer before they can be deemed lawful. A settlement agreement specialist will also review the proposed terms set out by your employer to determine whether they are reasonable or not.
4. I’ve received a settlement agreement from my employer and I’m happy with the terms – what do I do next?
If you are happy with the terms of your settlement agreement our solicitors can provide advice so that you fully understand what you are signing up to. If you are in a trade union, you should contact your trade union representative straightaway to arrange for the settlement agreement to be sent to us.
5. I’m in a trade union and need legal assistance with a settlement agreement – can Thompsons Solicitors help me?
Yes – for more information on how our experts can assist, visit our dedicated trade union website.
6. What happens if either party breaches the settlement agreement?
A settlement agreement can be breached in a number of ways, such as an employee bringing a claim against an employer despite agreeing not to in the terms of an agreement, or an employer failing to pay an agreed sum of money. As a settlement agreement is a legal document, once breached, a claim can be brought to the courts for breach of contract.
7. Will using this legal service cost me anything?
No. When making a settlement agreement, the cost is usually covered by the employer and we will not charge more than their contribution.
8. Why should I use Thompsons Solicitors to help me with my settlement agreement?
Thompsons Solicitors has a nationwide Settlement Agreement Unit (SAU) comprising lawyers with extensive experience in advising and supporting people to secure the best settlement agreement possible. We pride ourselves on providing a fast and efficient settlement agreements service, finalising those with even the most urgent deadlines.