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What is a Settlement Agreement and when should your business consider using one?

Simply put, a settlement agreement is a legally binding contract between employer and employee that agrees certain terms to end the employment contract whilst also setting any claims the employee may have had against the employer.

Settlement agreements should only be used in situations where there are potential or existing claims and/or workplace disputes to be resolved between both parties. The settlement agreement must be executed properly so that any risk of future claims being made against the employer are removed and the matter can be closed. Employers should not rely on oral or email correspondence as a replacement for a settlement agreement which is more extensive and seeks to protect the employer from any further claims and tribunals.

Why Use Rotheras for your Settlement Agreement?

We believe it’s essential for your solicitor to have an in-depth knowledge of your business, the environment it operates in and the circumstances for which the requirement for a settlement have arisen. At Rotheras, our employment solicitor Natalie Abbott has over ten years’ experience advising employers in sectors including retail, leisure and hospitality, communications and construction industries.

Natalie can help at every stage of the process, from the initial stages of advising on whether a settlement agreement is necessary through to negotiation of the contract terms and finally, preparation of the settlement agreement to bring your matter to a full conclusion.

Employment expertise is particularly beneficial throughout the negotiation process, it can result in cost saving benefits where seeking to prevent the other party’s solicitor needlessly inflating the settlement value for their client.

Where we can help your business with Settlement Agreements

  • We can help your business at every step of the settlement agreement process
  • We can advise on whether a settlement agreement is the right course of action for your situation
  • We can assist in drafting the settlement agreement also ensuring that restrictive covenants (agreements that protect ex-employees from working with competitors, taking business contacts or work away from your business and/or taking employees) can be enforced where necessary and your business remains protected
  • We can liaise with the other party’s solicitor on your behalf to negotiate the amount offered on the settlement agreement
  • We can advise on stipulations to be put in place to prevent any future litigation claims
  • We can advise on future policy, training or contract drafting to avoid similar circumstances in future

We can also help with:

  • Redundancy and Restructuring
  • Breach of Contracts
  • Termination of Contract
  • TUPE
  • Employment Dispute Resolution


Getting staff back to work safely during COVID-19 – free toolkit for employers

With restrictions being eased in some industries to allow staff to return to work, this poses a number of challenges for employers to re-open their businesses with adherence to hygiene and social distancing measures. There will also be further challenges in bringing some staff back who may be reluctant to return due to concerns about their health and safety.

Our practical information toolkit provides an overview of how your business can fulfil it’s legal requirements to get staff back into work and deal with any staff objections. Click here to download our free toolkit and prepare your employees for a safe return to work.

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Natalie Abbott

“We work hard to get your business the outcome it deserves”

Natalie Abbott
Employment Law Specialist

Contact our Employment Law Team
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