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Employment Law Advice — Employees

Settlement agreements and compromise agreements

Settlement agreements, also known as compromise agreements, aim to assist in reaching a mutually agreeable terms to end an employment relationship before a dispute has arisen. Regulations changed in July 2013 so that employers and employees can enter into confidential negotiations and enter into a dispute free agreement. Our expert solicitors can assist you in getting the most out of your settlement or compromise agreement from a situation where employees have few options. 

What is a Settlement Agreement?

A settlement or compromise agreement is an agreement between you and your employer on the the termination of your employment, in return for an enhanced redundancy payment from your employer.

Settlement agreements are used in a range of circumstances. It is likely that you will be asked to sign a settlement or compromise agreement if you are:

  • Being made redundant
  • Mid disciplinary or performance proceedings and looking to do a deal
  • Being offered severance terms

However, settlement agreements are most often used when the employer is making an enhanced redundancy payment in return for a guarantee that no claims will be brought against them.

Do you need to take advice on a settlement or compromise agreement?