Employment Law

Settlement Agreements in Solihull

Take the stress out of negotiating your settlement agreement with the help of Pearcelegal. Our employment law specialists can represent your settlement agreement negotiations.

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If you have suffered a dispute in the workplace as an employer or an employee, we can provide dispute resolution and settlement agreement support. We represent employers and employees to help carve a clear path forward.

Facing a dispute in the workplace can be incredibly stressful. If you are offered a settlement agreement – formerly known as a compromise agreement – you need to seek legal advice before moving forward. A settlement agreement will outline the terms of an employee’s termination, how much compensation they can expect to receive and what is expected in return. This document has to be drafted with specific legal requirements in mind, and this is where our expert employment law team can help.

Settlement agreements explained

A settlement agreement, or compromise agreement, helps to resolve disputes in the workplace. If an employee faces a dispute or serious issue at work, their employer may choose to offer a settlement agreement to end their employment and prevent further legal action. We can provide legal support for both sides of the table, helping employers to navigate this difficult terrain while also ensuring employee rights are protected. A settlement agreement can cover:

  • The notice period and outstanding holiday pay

  • Compensation payment to the employee

  • Provisions for references

  • Employee’s agreement to not pursue further claims

Before offering or signing a settlement agreement, we recommend seeking expert legal advice from the Pearcelegal employment law team.

Frequently asked questions

How does a settlement agreement work?

A settlement agreement (or compromise agreement) is a legally binding document between an employer and employee. It will typically offer the employee a severance package in exchange for not pursuing a legal claim in a Tribunal or court. It may also include a non-disclosure clause to prevent the individual from talking about the company.

What should a settlement agreement include?

The settlement agreement should include a breakdown of the payments and when they will be paid. This should include outstanding salary, bonuses, commission and holiday pay. It should also outline if the employer will provide a reference. And finally, it may also include a confidentiality clause.

What happens if you refuse a settlement offer?

Rejecting a first settlement offer may result in the employer offering a more generous settlement agreement. This may happen if they have assessed their vulnerability to your claim. Remember that you should be given 10 calendar days to seek legal advice and make a decision on the settlement agreement, so you should never feel pressured to sign an agreement.

Is it better to settle or go to trial?

Settling out of court will be faster and less expensive than going to trial. If you want the situation to be over with, accepting a settlement agreement will help you achieve this.

Our specialists in Settlement Agreements

Nicholas Thomas

Managing Director

Hannah Smith

Trainee Solicitor

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