Employment Law

Settlement Agreement Solicitors for Employers in Solihull

Practical advice on agreed employee exits, negotiated terms and the risks your business needs to address.

A well-drafted settlement agreement can quickly and confidentially resolve a strained employment relationship. At Pearcelegal Solicitors, our employment law team for businesses advises employers in Solihull and the West Midlands under the law of England and Wales. We can assess potential claims and help you decide whether offering a settlement agreement suits the circumstances.

A settlement agreement (or compromise agreement) will help to prevent legal claims from a former employee. If you do not have the resources to fight a legal claim in an employment tribunal, or if you want to limit your exposure, a well-written settlement agreement can help. Our employment law and dispute resolution teams will work together to help you understand your legal position and plot a clear path forward.

We can help you create a robust and stringent settlement agreement that will allow you to avoid further legal conflict. Settlement agreements are often preferable to the employee as they will receive their payout quickly.

We will help you shape the offer, approach the employee and finalise the agreement. The final terms can address payment, confidentiality, references, post-termination restrictions and other agreed obligations.

If you are considering a settlement agreement or need help with an employment dispute, contact Pearcelegal on 0121 270 2700 to arrange a free 30 minute consultation. You can also contact us online.

Our settlement agreement services

If you are considering an agreed exit, we can support you through to signature and payment. Our settlement agreement services include:

Assessing potential claims and your likely exposure
Advising on protected conversations and without prejudice discussions
Planning the timing and wording of an offer
Drafting terms that address the identified statutory claims
Negotiating the settlement payment and contractual sums
Recording final pay and benefits correctly
Preparing an agreed reference and departure announcement
Protecting confidential information and intellectual property
Reviewing post-termination restrictions
Handling amendments from the employee's adviser
Advising on a breach of the signed agreement
Coordinating signature and completion

Why choose Pearcelegal?

We advise on the legal risk and commercial effect of each available route.
You deal directly with a solicitor who considers the employment history and your desired outcome.
Our employment and dispute resolution experience helps us assess claims and shape the proposed terms.
We agree our charges before work begins, so you understand the likely cost.
Pearcelegal has served the Solihull community for over 40 years, so we are familiar with the culture and expectations of the local area.

Frequently asked questions

What if the employee refuses?

The employee can reject the proposal or make a counteroffer. Where justified, you may continue a fair internal process, including a disciplinary, capability or redundancy procedure. Rejection of the settlement agreement alone cannot justify dismissal. You should avoid presenting dismissal as inevitable before a fair process has taken place.

How much compensation should I offer in a settlement agreement?

There is no fixed amount. The right offer will depend on what the employee is already owed, any claims they may have and the strength of the available evidence. We can assess these factors and compare the offer with the likely time, cost and risk of continuing with a formal employment process.

Does the employee need legal advice?

Yes, your employee must receive independent legal advice for the Settlement Agreement to be legally valid. It is customary for the employer to pay their employee’s legal costs.

How long should the employee have?

The ACAS Code recommends at least 10 calendar days for formal terms and independent advice, unless both sides agree otherwise. Complex terms or a required adjustment may justify a longer period.

Are settlement discussions confidential?

They can be, but not in every case. Section 111A of the Employment Rights Act 1996 may protect discussions about ending employment from being used as evidence in an ordinary unfair dismissal claim. The without prejudice rule may also apply where there is an existing dispute and the discussions are a genuine attempt to settle it. Both protections have exceptions and do not cover every type of claim

When should I offer a settlement agreement?

You may consider an agreement during disciplinary or capability action. It may also suit redundancy, sickness absence, a workplace dispute or another potential claim. Suitability depends on the employee’s position in the business, how long they have worked for you, and the risk they could bring a claim in the Employment Tribunal.

What is a settlement agreement?

A settlement 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.