Settlement agreements for employers: Protecting your business the right way

When employment relationships come to an end, whether through redundancy, performance issues, or workplace disputes, a settlement agreement can be one of the most effective ways to ensure a clean, fair, and legally compliant exit for both parties.

How Separation Differs from Divorce

A settlement agreement (previously known as a compromise agreement) is a legally binding contract between an employer and an employee. It allows the employee to waive their right to bring legal claims against the employer in exchange for agreed terms which usually include a financial settlement and other conditions such as a reference or notice payment.

Why Use a Settlement Agreement?

Handled correctly, settlement agreements can:

• Protect your business from future claims or tribunal proceedings.
• Allow for a smoother, quicker, and more confidential resolution.
• Help maintain a positive reputation and minimise disruption within your team.
• Give employees clarity, closure, and fair compensation.

How MBH Solicitors Can Help

At MBH Solicitors, we support employers through every stage of the process ensuring all agreements are fair, compliant, and clearly drafted. Our service includes:

1. Initial Consultation - Discuss your situation confidentially to determine whether a settlement agreement is the right approach.
2. Protected Conversations Advice - Learn how to start discussions safely, without prejudicing your position.
3. Drafting the Agreement - We’ll prepare tailored documentation that reflects your business’s needs.
4. Negotiation Support - We handle discussions with the employee’s representative to secure a mutually beneficial outcome.
5. Finalisation and Compliance - We ensure everything is executed correctly, meeting all legal requirements.
6. Post-Agreement Support - We continue to advise on any follow-up actions or obligations.

We work with employers of all sizes, from SMEs to larger regional companies providing practical, no-nonsense legal advice that safeguards your business interests.

Don’t risk costly disputes or procedural mistakes. Speak to our employment law team for expert guidance on settlement agreements, protected conversations, and redundancy situations.

📞 Call 01942 206060
📧 Email mbh@wigansolicitors.com