Contact our Specialist Employment Solicitor

Hannah Scott

Settlement Agreements are a tool which employers and employees use to settle claims in relation to an employee’s employment or its termination. They used to be called compromise agreements.  Very often an employee will receive an ex-gratia payment in return for signing the settlement agreement as compensation for loss of employment. The amount of the ex-gratia payment will depend on the circumstances and what is negotiated between the employer and the employee. 

Why do I have to see a Solicitor?

Because you will be giving up valuable rights to bring claims against your employer the Government has stipulated that you have to receive independent legal advice on the terms and effect of the agreement. A solicitor is one of the types of independent legal advisors who the Government has said can give this advice. 

What is involved? 

You will need to come in and meet with our employment solicitor who will go through the terms of the settlement agreement with you. If you have any questions you will have plenty of opportunity to ask them so that you are comfortable with and fully understand what you are signing. If you are happy with the terms of the agreement then you will sign it and our employment solicitor will complete the advisor’s certificate. These will then be sent to your employer who should sign the agreement and send you a copy. The advice given will be confirmed to you in writing. 

How much will it cost? 

It is usual for your employer to make a contribution towards your legal costs of being advised on the terms and effect of the settlement agreement. We will charge a fixed fee equal to what your employer is willing to contribute subject to a minimum of £250 plus VAT to advise on the terms and effect of the agreement. 

If you wish us to negotiate the terms of the agreement on your behalf you will be provided with a clear cost estimate in relation to this element of work.

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Worcester: 01905 900 900    Walsall: 01922 311 100    Cheltenham: 01242 375 100

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