Clarkslegal LLP - Solicitors in Reading and London

Employment Law Support for individuals

Settlement Agreements

What is a settlement agreement?

A Settlement Agreement, is a legally binding contract made between an employee and employer. A settlement agreement can be entered into either during or after employment.

The Settlement agreement is used to formally agree the leaving terms between you and your employer, and prohibits the employee from bringing legal action against the employer in respect of his employment and/or its termination, usually in exchange for a termination payment.

To be valid the settlement agreement must be in writing, specify the dispute being settled, and state that the conditions governing settlement agreements have been complied with. Before signing the settlement agreement, the employee must have received independent legal advice from a qualified person, such as a solicitor. Should you require legal advice in relation to a settlement agreement it is important that you select a law firm, with the necessary level of expertise, to make sure you receive the best outcome possible. We will explain the technical terms in plain English and advise you of the different options available to you. Sometimes an employer will provide you with a list of recommended solicitors but ultimately you are free to instruct whoever you wish.

How much will advice on a settlement agreement cost?

Your employer will usually provide a contribution towards your legal fees and in most cases this will be sufficient to cover the whole bill.

However, should you require us to negotiate revised terms on your behalf our fees may exceed your employer’s contribution. In any event, we will keep you fully appraised of our fees.

What if you don't live or work near us?

Don't worry if you are not close to any of our offices, we advise clients across the whole of the UK and in most cases, can advise you over the phone, saving you the time and the cost of attending meetings - unless of course you would prefer to do so.


For more information click here to visit our FAQ page.

For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office) or 0118 958 5321 (Reading office).