Copyright Moore Barlow LLP (Moore Blatch and Barlow Robbins merged May 2020)

Settlement Agreements – ensuring a MOORE favourable exit

If you find yourself in circumstances where you are offered a Settlement Agreement (formerly known as Compromise Agreement) upon leaving a business, understanding the terms and deciding whether to accept can be quite daunting.

Due to the complex nature of Settlement Agreements it is important that you instruct a specialised lawyer who will take you through the agreement comprehensively and explain the implications so that you are fully satisfied that you are receiving the best deal possible. 

What is a Settlement Agreement?

Employees cannot waive claims against their employer arising under employment legislation unless they enter into a formal Settlement Agreement that fulfils strict statutory requirements.

Settlement Agreements may be offered to employees to end the employment relationship on agreed terms, possibly in a redundancy situation, or to resolve a dispute that has arisen. The agreement will usually offer a lump sum payment and in return the employee signs away their rights to ever bring a claim against their employer. 

Why have I been asked to enter into a Settlement Agreement?

Once a valid Settlement Agreement has been signed by both parties you will be unable to bring an Employment Tribunal claim in relation to any matter set out in the agreement. Your employer may ask you to enter into a Settlement Agreement because they are concerned that you may have a claim against their business or because they do this as routine when an employee leaves their organisation. 

How can Moore Blatch assist you?

We can advise you on what potential claims may have arisen in the course of your employment and the value of your claims so that you can properly weigh up the offer on the table.

The team at Moore Blatch has vast experience in advising on and negotiating the terms of Settlement Agreements across all industry sectors. We will negotiate robustly and sensitively on your behalf, advising creatively and meaningfully on the best angle to take. We will ensure that you walk away with the best package possible.


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