The aim of a settlement agreement (or compromise agreement) is to achieve a "clean break" between an employer and employee when a contract of employment is to be terminated or a dispute is to be resolved. Settlement agreements are used in a range of circumstances, most often in redundancy situations where the employer is making an enhanced redundancy payment in return for a guarantee that the employee will not bring any claims against them.
Employment Law Services — Employers
Settlement agreements — employers
We have a team of specialist employment solicitors on hand to assist you when you are negotiating redundancies and reaching a settlement agreement. They can assist you in drafting the terms of the settlement agreement (previously known as compromise agreement).