Settlement Agreement – Employee

We provide settlement agreement advice to employees. If you are an employee who needs advice on a settlement agreement that you have been offered by your employer, we can help you. We also draft settlement agreements for employers. This means that we have built up experience of advising from both sides of the table and we can help you in advising on the important points in a settlement agreement. Sometimes it can be very unsettling when you are first offered a settlement agreement – we can put your mind at rest and ensure that you get the best deal.

There is a vast amount of ‘legalese’ in every settlement agreement; however you should consider the following 5 broad points before considering the detail:

  1. Are you being offered enough money? How long will it take you to find another job? Does the offer adequately compensate you? Does it cover not only salary but also benefits such as car or health cover as well as your bonus and any stock options?
  2. The agreement will be in full and final settlement of all claims. Do you have any other claims such as a personal injury claim? If so, the agreement needs to reflect this.
  3. Re-read your service agreement/ contract of employment. Will you agree to continue to be bound by any restrictive covenants or will you wish to try and amend them?
  4. Is the agreement structured in a tax efficient way? Income tax and NI will normally be deducted from your pay in lieu of notice (PILON). After PILON is dealt with and taxed, normally up to £30,000 of the remaining payment can be paid tax free.
  5. Finally, the settlement agreement is likely to have an ‘entire agreement’ clause. This means that only the terms in the agreement have legal effect. Make sure everything you want is in the agreement as nothing else will have any legal effect.

How can we help? Talk to one of our experts

    This form uses Google reCAPTCHA v3, which is subject to the Google Privacy Policy and Terms of Use, to fight spam and abuse.

    Employment Law
    Other advice

    Employment Tribunal

    Employment Tribunal

    Even the best managed businesses will be required to defend employment tribunal proceedings from time to time. Since the ACAS Early Conciliation Scheme started in 2014, your company will be approached by ACAS to see if your company wishes to settle the claim. We can represent you in that process and also at the Employment Tribunal, if you do not wish to, or are unable to settle.

    Discover more
    handling redundancy


    Whether you are thinking of making 3 or 300 employees redundant, we can help you. We have extensive experience of advising on redundancies built up before the financial crash in 2008 as many of our employer clients were involved in mass redundancies due to ‘off shoring’ production from the turn of the century.

    Discover more
    Industrial Relations

    Industrial Relations

    The skills that an HR manager needs to operate in a collective environment are very different to those needed to manage in an environment where there are no collective negotiations. Our extensive experience in industrial relations has been built up over many years of advising employers in unionised environments. We can advise you on how to deal with industrial disputes as well as on the law on strike action.

    Discover more
    Settlement Agreements

    Settlement Agreement – Employer

    In our experience, settlement agreements are used widely by employers. They allow an employer and employee to terminate employment in a civilised fashion with the employer knowing they cannot be sued and the employee receiving appropriate compensation.

    Discover more
    ©2015 Scrase Law Ltd
    Privacy Policy     |     Tribunal Pricing     |     Complaints Procedure
    Website design by Bob