Settlement Agreements for Employees

When an employee and their employer part ways due to redundancy, a complaint or a particular grievance, it can often lead to a dispute.

As a result, it’s now common for employees in this situation to be offered a settlement agreement (previously known as a compromise agreement) by their employer when they leave their job early.

What is a settlement agreement?

A settlement agreement is defined as a written legal contract which ends the relationship between you and your employer on jointly agreed terms.

As part of a settlement agreement, it is normal for your employer to agree to pay you a sum of money, and possibly to agree to provide you a reference for future employment.

In return, under the terms of a settlement agreement you agree not to pursue an employment tribunal claim against your employer for terminating your employment because of a particular complaint. This could include discrimination, such as sex discrimination, age discrimination or racial discrimination, bullying in the workplace, or another form of unfair treatment during your employment.

In order for a settlement agreement to be signed, you must seek and receive advice from an independent adviser, such as a specialist employment solicitor.

Our employment law solicitors in Bristol can advise employees going through redundancy or the termination of their contract on any settlement agreement received from their employer. They can advise you on the consequences of signing your settlement agreement, explain the meaning of particular clauses to you and negotiate on your behalf with your employer for better terms.

Although it’s common for employers to contribute to the costs of this legal advice, sometimes they provide you, the employee, with a limited budget for this purpose. For this reason, our fixed fee packages – starting from £375 + VAT – have been designed to help you keep the costs of your settlement agreement advice under control.

If your employer’s contribution doesn’t quite cover your legal costs, we can also sometimes help you negotiate an increased budget from them.

How we can help

To speak to a specialist employment solicitor with experience in advising employees on settlement agreements, call us on 0117 325 2929 or complete our online contact form.




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We’re here to help. Please fill in the form and we’ll get back to you as soon as we can. Or call us on 0117 325 2929.





  • "Samantha was very extremely professional and efficient in her advice and carrying out the work. However she was also very personable and kind which was much appreciated in the circumstances."
    AnonAnon | Employment Client
  • "Samantha, thank you for your help and advice, you made the process very straightforward and it was a pleasure meeting with you."
    AnonEmployment Client
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  • "I’m happy it’s all over! Thanks so much for all your help and guidance with this matter."
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  • "They made the whole process of reviewing my redundancy settlement and recommending alterations so simple and easy. I truly felt that my case mattered. Thank you so much."
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