Settlement Agreement Solicitors


It is quite common that during the life of the employee-employer relationship that circumstances change, this can lead to both the parties choosing to the terminating of their relationship. This tends to arise as a result of a dispute or grievance that the employee or employer has with the other, which has not been resolved to one party’s satisfaction. Alternatively the company may be having a hard time in their current market place which may have forced them  to reconsider their staffing requirements. Regardless of the situation that leads to a party to consider terminating the employer-employee relationship, this is normally achieved through the use of what are called Settlement Agreements or compromise agreements.

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If you are an employer looking for straight forward advice in language that you understand our Glasgow based team are here for you.

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Are you an employee?

If you are an employee needing for clear advice that can help your case our Glasgow based experts are here for you.

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Settlement Agreements | Compromise Agreements – What are they?


A Settlement Agreement or compromise agreement is a written agreement which, in law, ends the employee – employer relationship. It is more than common that the employer will suggest the use of a Settlement Agreement or compromise agreement but employees are also more than entitled to consider their use and bring it to the employers notice.


When a Settlement Agreement or compromise agreement is drawn up, its terms will be specific to whatever scenario has led to it being written up. Normally, it will be a dispute between an employee and an employer that merits its use. While most of the terms of the Settlement Agreement will be subject to negotiation, the vast amount of these compromise agreements normally allow an employee to remove themselves from their role with an employer, in exchange for their waiving any rights that they have to bring an employment law claim before an Employment Law Tribunal against their employer. An employer will normally compensate with a level of financial compensation and a reference to allow their former employee to look for another job.

settlement agreements

What do I do with a Settlement Agreement ?


As mentioned earlier on, a Settlement Agreement or compromise agreement brings the employee-employer relationship to an end. Because its use carries legal consequences, it is paramount that it is a valid document that is appropriately signed by everyone concerned. Before a Settlement Agreement or compromise agreement will be considered as valid, an employee must have taken independent legal advice, normally from an Employment Lawyer on the substance of the document. Any independent legal advice sought should also come from a Solicitors firm that has professional indemnity insurance.


We have great experience of advising on the terms of Settlement Agreements or compromise agreement. We are hugely familiar with the key terms of a settlement agreement document, and are prepared to negotiate the financial rewards} that is put forward by employers if required. It is important that clients do not become concerned about having to pay for legal advice on the terms of Settlement Agreements. As a result of the legal requirement for employees to get legal advice, it is more than often the case that employers will pay the fees of an employee’s legal representatives. We have professional indemnity insurance and will provide objective advice with the very best interests of our client in mind, which is never affected by an employer’s payment of our professional fees. Our employment solicitors will ensure that you are best advised on the meaning of all of the terms and conditions of a Settlement Agreement or compromise agreement.

Do I have to accept the terms of a Settlement Agreement or compromise agreement?


When an employer presents an employee with a Settlement Agreement, the employee should seek legal advice on its content. Employees need not agree with what the employers have written in the Settlement Agreement or compromise agreement. If they are not satisfied with a Settlement Agreement’s terms, they may ask their legal advisors to communicate this to the employer. This will normally result in employers reconsidering the terms of the compromise agreement, before providing a revised copy to the employee. Until the Settlement Agreement or compromise agreement is signed by both the employee and employer, being acceptable to both parties, the employer-employee relationship will remain.


What happens if I accept the terms of a Settlement Agreement or Compromise Agreement?


If an employee decides that the terms of a Settlement Agreement are acceptable, having been given independent legal advice on what the different clauses mean, they may sign the agreement and give it back to the employer. Upon receipt of the document the employer will then identify what is to be the ‘Termination date’, which will be when the employee – employer relationship ends. The employer will include this and a timetable of when financial compensation will be paid to the employee. The employer will normally give the employee a reference, allowing them to pursue employment with another company. The employee will leave their post and waive any rights they would have had to bring a claim before an employment tribunal. In exchange, they will receive the compensation that was agreed.


Contact our Settlement Agreement Lawyers

If you are thinking about using a Settlement Agreement or compromise agreement, or have been presented with one having been unable to resolve a dispute, speak to our expert employment solicitors now. We will provide advice which takes into consideration the terms of the Settlement Agreement or compromise agreement.