If you’ve been subject to unfair dismissal, redundancy, discrimination, or bad treatment in any other way by your employer, we can help you secure the very best outcome from your employment dispute. Regardless of the stage you’re at, our employment law solicitors will be delighted to consider your case.

We’re one of London’s top employment law practices, with a well-deserved reputation for playing hardball for everyone seeking our expert legal advice. We have a team of highly experienced and knowledgeable specialist employment lawyers that are renowned for delivering consistent results for our clients.

We work with employees all across the employment spectrum, including fund managers, senior insurance brokers, leading bankers, hedge fund managers, middle managers, and ancillary staff.

100% Success Rate in Contentious Cases for both Employees & Employers

Contact our employment lawyers at 0207 9657203

or contact us online for a callback.

What is a Settlement Agreement?

A Settlement Agreement, also known as a compromise agreement, is a legally binding contract negotiated between an employee and employer, usually just before termination of employment. Once you sign the agreement, you cannot take your employer to the employment tribunal for the legal claims mentioned in the agreement.

Negotiations about Settlement Agreements are usually confidential, which means if an agreement is not reached, the negotiations will not be admissible as evidence in claims before an employment tribunal or in other court proceedings (except in certain circumstances).

You will hear the term “without prejudice” used in the negotiations. This is a common law principle, which prevents statements, made in a genuine attempt to settle a dispute, from being put before a tribunal or other court proceeding as evidence.

Although Settlement Agreements are largely used for terminating an employment contract, they can also be used to settle disputes while you remain in employment. This can be a way of agreeing to difficult work situations and disputes such as potential claims of harassment, discrimination, unpaid bonus or commission.

Whether your employer approaches you to discuss a Settlement Agreement, or you ask your employer for a Settlement Agreement, you have the right to negotiate any of the terms in the agreement. Our experience can ensure the best possible settlement is achieved on your behalf, and we offer to conduct all negotiations on a no win no fee basis whereby only a successful outcome will lead to a fee being charged.

Settlement Agreement negotiations must be confidential. You should always entitle any communications to your employer with “without prejudice” during settlement negotiations to ensure they cannot be used in any future legal proceedings. Once the agreement has been signed by both parties and the employee’s solicitor, it is a legally binding document which can be enforced by either party.

Expert Settlement Agreement Advice for Employees

In almost all instances, the City’s financial institutions do their utmost to avoid bad publicity, loss of management time, and legal costs of fighting employment tribunal claims. They almost always want to get disputes over as soon as possible and offer employees Settlement Agreements.

And that’s where we come in. As specialists in all aspects of employment law, Settlement Agreements are a frequent aspect of our work. If you’ve already been offered a Settlement Agreement, we can help ensure that you are properly compensated by your employer in respect of your dismissal or redundancy.

Employers often include restrictive covenants in the employment contract, or within the Settlement Agreement itself, that will restrict you for a set time period in the types of employment you can work in. As most people stay in the same industry, it can be very damaging to your career development.

Discussing such covenants with your solicitor will allow them to negotiate the best possible outcome for you, ensuring your best interests come first.

We’ll do our best to get you released from any prohibitive restrictive covenants that could restrict your ability to get a new job, and we should be able to secure enough money for you to live comfortably while you are looking for work.

We are able to review and advise on the Settlement Agreement terms for the amount of the employer’s contribution towards costs, and any negotiations can be done on a no win no fee basis whereby only the increase on the initial offer would be subject to a success fee of 29% plus VAT.

Our Legal Fees

In the great majority of cases, our services will not cost you a penny, as we will ensure that our fees for reviewing the Settlement Agreement on your behalf are met by your employer as part of the Settlement Agreement.

In many instances we have been able to significantly increase the sums offered by employers in Settlement Agreements, using our expert knowledge of the law, and our detailed understanding of our client’s circumstances.

Employment Settlement Agreements

We understand bringing the end of employment can be a daunting process for any employee. When a dispute does arise, sometimes the best option for all concerned is to agree with your employer to terminate the contract of employment.

This is done by the way of a settlement agreement and is used for instances such as redundancies, mutually agreed terminations or resolving a dispute; such as a claim against the employer or proposed disciplinary or dismissal of the employee.

Settlement Agreement FAQs

Do I Need a Solicitor to Negotiate a Settlement Agreement?

In order to have a legally binding Settlement Agreement, you must have sought independent legal advice in the negotiation stage. The independent advisor must have professional indemnity insurance in place, and be named in the Settlement Agreement for it to be effective

Who Pays Solicitor Legal Fees for a Settlement Agreement Negotiation?

Employers will often offer to pay the solicitor fee within the agreement. However, this is not always the case. If you are in any doubt, speak to one of our Employment Solicitors who can discuss this with you and can negotiate the agreement terms with your employer on your behalf.

In the majority of cases we see, our services come at no cost to our client, as we usually ensure our fees are covered by your employer as part of the Settlement Agreement.

All negotiations can be conducted on a no win no fee basis, and the success fee will only apply to the increase on the initial offer. 

Will I Receive a Settlement Sum?

A. A Settlement Agreement usually includes an agreed financial payment from your employer. It is beneficial to seek representation from an experienced Employment Solicitor who can negotiate on your behalf.

We have years of experience in increasing the sum of money offered by employers in Settlement Agreements, using our expert knowledge of the law and our detailed understanding of our clients’ circumstances.

Do I Pay Tax on Settlement Agreements?

Settlements are tax-free up to £30,000. However, if you are receiving any contractual payment, such as a payment in lieu of notice, or any unused holiday entitlement, this will be subject to the usual deductions of tax and NI.

Am I Entitled To a Reference From My Employer After a Settlement Agreement?

There is no legal requirement for your employer to provide a positive job reference; however, it is usually included in the agreement with your employer.

What Happens If You Breach a Settlement Agreement?

Settlement agreements can be breached by both the employee and employer, and if done so, can be brought forward to the courts as a breach of contract.

Settlement agreements can be breached in many ways;

• If the employee brings a claim that was not agreed to on terms of the settlement agreement.
• If the employer fails or refuses to pay an agreed amount of compensation
• Either party breaking the confidentiality clause included in the agreement

Settlement Agreement Lawyers in London

Cavendish Employment Law is a London law firm with a high profile and an enviable track record in advising and representing employees from all parts of the employment spectrum, including fund managers, senior insurance brokers, leading bankers, hedge fund managers, middle managers and ancillary staff.

We have a reputation for being the leading employment lawyers for the finance sector and senior executives.

We arrange Settlement Agreements regularly for our clients, and we always make it our business to get you the best possible outcome.

We’ve secured very significant payouts for senior employees across a wide range of issues including discrimination claims, unfair dismissal claims and settlement agreements.

If you’re facing any difficulties at work or if your employer has discussed the possibility of a Settlement Agreement with you, don’t hesitate to get in touch with us. One of our employment law specialists will be able to advise you within hours of your call.

Contact our employment lawyers at This email address is being protected from spambots. You need JavaScript enabled to view it. or contact us online.