Settlement agreement solicitors, London

Explore how we can help you with any employment related legal requirements.

Contact our team

Our settlement agreement solicitors in London are here to help you secure the best possible outcome if you are offered this kind of agreement by your employer.

We’re particularly experienced working with and representing employees in high-seniority roles, helping you to secure the best possible outcome from your settlement agreement when based in London.

  • A settlement agreement is a way of ending an employment contract that does so on an agreed set of terms. This is sometimes done in order to resolve an ongoing employment dispute.
  • If offered a settlement agreement by your employer, you are obliged to take legal advice before signing the agreement to ensure you fully understand the potential consequences of waiving certain rights.
  • Settlement agreements can be very complex. Our specialist employment solicitors in London can guide you through all clauses of the agreement and ensure you receive the best possible package in your specific circumstances.

If you have been offered a settlement agreement (which used to be known as compromise agreements) by your London employer, it’s essential that you have specialist advice to make sure your interests are protected, before you sign anything.

What is a settlement agreement?

A settlement agreement is a legally binding contract between an employer and employee designed to end the employment on a set of agreed terms. The employee must take legal advice before signing the agreement.

Katherine Maxwell

Katherine Maxwell

Partner | Employment

023 8071 8094

Why might a settlement agreement be offered to an employee in London?

One reason why a settlement agreement is sometimes offered is when your employer wishes you to leave the employment of the business under a specific set of terms. This might be because there is an ongoing dispute with your employer, or it might be instead of redundancy or for another business reason. A settlement agreement generally includes a lump sum of money that you will be paid and, in return for this, you’ll agree to sign away your employment rights to bring a potential claim against your employer either now or in the future.

Settlement agreements in London are often offered to avoid a formal redundancy or disciplinary process, which can save money and internal resource, and means that the organisation is protected from the risk of a future claim e.g. for unfair dismissal.

Why do you need legal settlement agreement advice in London?

As a settlement agreement requires you to waive legal rights, it’s a requirement that you receive independent legal advice about the agreement before you sign it. This is to make sure that you understand the consequences and implications of the agreement before you make a decision and can also help you to determine whether the sum of money being offered is fair, in relation to the rights that you are voluntarily giving up in return for it.

Our expert settlement agreement London team will take you through the agreement to make sure that you understand all of the clauses and offer advice on whether the sum offered is fair. We can make sure that anyone who needs settlement agreement advice in London has access to the expert advice needed for them to make an informed choice on the offer.

If you don’t feel that the deal you are being offered by your London employer is fair, we can negotiate on your behalf to help ensure that you receive the best possible outcome.

We are here to help

Discover how our expert employment lawyers can help you.

The benefits of using specialist settlement agreement law firms in London

Using an employment law specialist with specific experience in settlement agreements in London can help ensure that you get the best possible outcome from the situation.
Some of the assistance we can offer include:

  • Helping to assess the fairness of compensation or redundancy package involved in the settlement agreement and negotiating on your behalf if the agreement is not deemed to be fair to you
  • Negotiating clauses such as confidentiality on your behalf, so that your former employer agrees they will not reveal anything about the settlement agreement to anyone else
  • Ensuring that the agreement includes an obligation for your employer to provide you with an agreed reference.

Should I sign a settlement agreement?

Every situation involving a settlement agreement is different, which means that it’s absolutely essential to get an expert to look at every clause in the agreement that you are offered. With legal advice from an experienced settlement agreement lawyer in London, they can make sure that you’re aware of any potential consequences before you make a decision about signing yours.

Sometimes, your London employer might have offered you a settlement agreement because they believe you may bring an employment tribunal claim against them in future and they want to avoid this. If you sign the settlement agreement, this will mean that you’re agreeing that you won’t make a claim against them at any point, in return for the sum of money they agree to pay you.

It’s vital that you understand every aspect of the agreement before you decide to sign it and that you are happy to take the money offered in return for waiving certain employment rights. It can be difficult to know what kind of settlement agreement in London is a fair deal or not, but our expert team will be able to help you assess what is reasonable and appropriate in your specific circumstances. You can compare the sum offered with the potential value of a claim if you were to go to an employment tribunal, but it’s important to note that there is no guarantee that the tribunal panel would find in your favour, which means you could lose out financially.

How much do settlement agreement solicitors in London cost?

The cost of any legal assistance for your settlement agreement will very much depend on the specific circumstances involved. If you require just the settlement agreement to be checked and explained fully to you, this cost is often covered, at least in part, by your employer.

If there are negotiations required for the settlement agreement to be acceptable to all parties, there is usually an additional cost for the legal work involved. At Moore Barlow, we always ensure that legal costs and any other fees are discussed in advance, so there are no unexpected surprises.

Understanding protected conversations and without prejudice discussions

Many settlement agreements result from a protected conversation or “without prejudice” discussion initiated by the employer. These conversations are designed to allow open communication about ending employment without the content being used as evidence in future tribunal proceedings. However, for the protection to apply, the conversation must not involve improper behaviour such as discrimination or harassment. Understanding your rights during these discussions is essential to ensure fair treatment and a suitable exit package.

Key Components of a fair settlement agreement

A fair settlement agreement should include not only financial compensation but also provisions regarding notice period, accrued holiday pay, a neutral job reference, and the settlement of any outstanding bonus or commission. #

It may also cover the return of company property, confidentiality clauses, and post-employment restrictions. Each clause must be reviewed carefully to ensure that no excessive limitations are placed on future employment.

Why timing matters in settlement agreement negotiations

Timing is critical when negotiating a settlement agreement in London’s competitive employment market. Delaying acceptance or failing to act swiftly after a termination proposal can affect your negotiation leverage. Early legal advice ensures that you understand your rights and options before agreeing to any terms, which can be particularly important in industries with regulatory obligations or bonus cycles such as finance and law.

Why choose us as your settlement agreement lawyers in London?

Our experienced team providing specialist settlement agreement advice in London can help to ensure that you get the best possible outcome from the settlement agreement process, enabling you to concentrate on the next stage in your career and move forward with confidence. Choosing an expert settlement agreements lawyer in London means that your interests are protected as you have specialists on your side to achieve the best possible result.

In addition to our deep understanding of employment law in London, Moore Barlow is accredited by The Law Society with the Lexcel quality mark, reflecting our commitment to excellence in client care and legal practice management. Our employment team includes members of the Employment Lawyers Association (ELA) and is ranked in both Chambers and Partners and The Legal 500 for our client service and sector-specific knowledge. Unlike many firms, we provide a highly personalised approach, offering direct lawyer contact throughout your case without delegation to junior staff. Our local presence across London ensures accessibility and familiarity with regional employment practices, including City-specific employer policies and financial services regulations.

How we can help

At Moore Barlow, our experienced solicitors in London specialise in resolving issues related to settlement agreements. We understand that the termination of employment can be a challenging and stressful time for individuals. Our team is dedicated to providing comprehensive legal guidance and representation to both employees and employers. We can assist you in reviewing, negotiating, and drafting settlement agreements to ensure that your best interests are protected. Our expertise covers a wide range of employment-related issues, such as unfair dismissal, redundancy, discrimination, and breach of contract. Trust us to navigate complex legal matters and achieve the most favourable outcome for you.

We provide support across a broad spectrum of employment law matters related to settlement agreements, including negotiating exit terms, advising on post-termination restrictions, reviewing confidentiality clauses, and assessing the impact of workplace discrimination or whistleblowing on your agreement. For senior executives, we offer advice on share options, bonuses, and other complex remuneration packages. Additionally, we provide guidance during pre-termination conversations and protected discussions to ensure your rights are safeguarded from the outset.

Who we help

Our solicitors in London specialise in settlement agreements, assisting employees when offered this route for termination of employment. Our team is experienced in providing comprehensive legal support tailored to your needs.

We assist clients from a wide range of industries including finance, professional services, healthcare, education, and the technology sector. Whether you are a senior banking executive negotiating a high-value settlement agreement or a public sector employee facing redundancy, we have in-depth experience tailored to your industry demands. We also help startups and SMEs in London navigate employee exit strategies while ensuring compliance with employment legislation to reduce risk and preserve reputational integrity.

Contact us

Contact us today to speak to our expert team of employment law solicitors in London. Whether you need advice on settlement agreements, termination of employment, or any other employment law matter, we are here to help. Call us on 023 8071 8000 or email us to schedule a consultation.

We have offices in LondonRichmondSouthamptonGuildfordLymington and Woking and offer specialist employment legal services to clients nationwide. Contact Moore Barlow to find out how we can help.

We are here to help

Discover how our expert employment lawyers can help you.

Contact our employment team

Frequently asked questions: Settlement Agreements

What is the difference between a settlement agreement and redundancy?

Redundancy is a specific legal process that can lead to the termination of employment due to a role being no longer necessary. A settlement agreement, however, is a mutually agreed contract between an employer and employee, which can be used in various termination scenarios, including redundancy, but also in disputes or negotiated exits without following formal procedures. It typically includes a financial settlement and waives the employee’s right to bring legal claims against the employer.

No, you are not obligated to accept a settlement agreement. You are entitled to seek independent legal advice and evaluate whether the terms are in your best interest. If the agreement is unacceptable, you can negotiate for improved conditions or refuse the agreement entirely and pursue other legal options if necessary.

Employees are usually given a minimum of 10 calendar days to consider the terms of a settlement agreement. However, longer time frames may be offered depending on the complexity of the agreement and the circumstances surrounding the termination. It is critical to use this time to consult a solicitor to fully understand your rights.

Up to £30,000 of compensation in a settlement agreement that is paid in connection with the termination of employment may be tax-free, provided it qualifies under HMRC guidelines. Payments relating to wages, bonuses, or holiday pay are typically taxable. It’s essential to obtain legal advice to clarify how taxation applies to your specific agreement.

Yes, a job reference can be included as part of the settlement agreement terms. Many employees negotiate for a fair and agreed reference to be appended or incorporated into the document, helping to ensure a smoother transition to new employment. It can be a key point during negotiations.

For a settlement agreement to be legally binding, the employee must have received independent legal advice from a qualified solicitor or authorised adviser. If legal advice is not obtained, the agreement will not be enforceable. Employers usually contribute to the legal costs for this advice.

In most cases, no. By signing a settlement agreement, you waive your right to bring most types of employment-related legal claims, including unfair dismissal and discrimination. However, certain claims such as those relating to personal injury (if unknown at the time) or pensions may still be viable unless explicitly waived. Always seek legal advice before signing.

Sign up to our employment law newsletter

Our team accreditations

Don’t take our word for it…