Settlement Agreements

About employment settlement agreements

Settlement agreements are legally binding contracts and deciding whether or not to accept their terms can be a daunting prospect. Getting expert advice during the settlement agreement process is a legal requirement.

How our settlement agreement solicitors can help you

Our team of experts has helped thousands of people secure the best settlement agreements possible through a fast and efficient service. They can help you too.

If you find yourself being asked to sign a settlement agreement, Thompsons’ solicitors can 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.

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.



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 upon 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.