What Is a Settlement Agreement? A Complete Guide for Wigan Employees

If you’re an employee in Wigan—whether in the town’s busy logistics warehouses, high-street retail stores, or historic industrial mills—hearing “settlement agreement” from your employer can spark panic and confusion. You might be facing redundancy at a Wigan factory, a dispute in a local office, or a company restructure. It’s stressful, and it can feel like you’re alone. At MBH Solicitors, we’ve helped hundreds of Wigan workers secure fair deals with clear, compassionate, and expert advice. We’re your trusted local partner right here in Wigan.

This complete guide explains settlement agreements in plain English. Whether you work in Wigan’s manufacturing, retail, or service sectors, you’ll learn what a settlement agreement is, why it’s offered, what to expect, and how to protect your rights. Let’s make sense of it together—so you can face the future with confidence.

What Exactly Is a Settlement Agreement?

A settlement agreement is a legally binding contract between you and your employer to end your employment on agreed terms. It’s a formal exit: you receive a financial package and, in return, waive your right to bring future claims like unfair dismissal or discrimination.

In Wigan, where manufacturing, logistics, and retail dominate, these agreements often arise during redundancies, performance issues, or workplace conflicts. UK employment law requires strict rules for validity—including independent legal advice, paid for by your employer. That’s where MBH Solicitors in Wigan steps in, ensuring every clause is fair and explained clearly.

Why Would Your Employer Offer a Settlement Agreement?

Employers don’t offer settlements randomly. Common reasons in Wigan include:

• Redundancy or Restructuring: A Wigan warehouse downsizing or factory cutting shifts.
• Workplace Disputes: A grievance in a Wigan call centre or performance clash in a retail store.
• Performance Issues: Avoiding formal discipline with a clean exit.
• Mutual Agreement: When a role in Wigan’s service sector no longer fits either party.

Settlements reduce legal risk for employers—but only work for you if the terms are fair.

CWhat’s Typically Included in a Settlement Agreement?

A strong agreement contains several key elements:

1. Financial Compensation
   • tatutory Entitlements: Notice pay, accrued holiday, and statutory redundancy (capped at £719/week in 2025—always verify current rates).
   • Ex-Gratia Payment: Tax-free up to £30,000. Wigan workers in retail or logistics often secure 3–6 months’ salary.
   • Other Benefits: Bonuses, pension top-ups, or outplacement support for Wigan’s job market.
2. Confidentiality Clauses
   Protect legitimate business interests (e.g., client data from a Wigan logistics firm) but must not silence genuine concerns like discrimination. 
3. Reference Agreement
   A neutral or positive reference—vital in Wigan’s tight-knit employer network. 
4. Restrictive Covenants
   Reasonable limits (e.g., 6 months non-compete within Greater Manchester) to remain enforceable. 
5. Legal Advice Funding
   Employer typically cover around £350–£500 + VAT for independent advice. 
6. Other Terms
   Return of company property, waiver of tribunal claims, or perks like keeping a work phone. 

At MBH Solicitors, we review every line and negotiate better terms tailored to Wigan employees.

The Emotional Side: Why Settlement Agreements Feel Stressful

Facing a settlement can feel like a personal blow—especially after years at a Wigan mill, warehouse, or shop. Anxiety about money, reputation, and finding new work is normal. That’s why MBH Solicitors combines legal expertise with real empathy. We listen, explain your options, and fight for what’s right—for Wigan workers, by Wigan experts.

How to Know If Your Settlement Agreement Is Fair

Quick fairness checks:

• Compensation: Full entitlements + meaningful ex-gratia (e.g., several months’ pay for a Wigan retail manager).
• Clarity: Simple language, no hidden traps.
• Restrictions: Reasonable in scope and time.
• Time to Decide: At least 10 days (Acas guideline).
• Legal Support: Fully funded, truly independent advice.

If anything feels off—don’t sign. Contact MBH Solicitors first.

Why You Need Independent Legal Advice

UK law requires independent advice for validity. A Wigan-focused solicitor will:

• Explain the agreement in plain English.
• Compare compensation to potential tribunal awards.
• Negotiate higher pay, better references, or looser restrictions.
• Protect your future in Wigan’s interconnected job market.

MBH Solicitors has won thousands extra for Wigan clients by challenging unfair clauses.

Common Pitfalls to Avoid

• Signing Too Quickly:You can use your full 10 days if you want to.
• Not Negotiating:The first offer is rarely the best.
• Ignoring Future Claims:You waive rights permanently—be certain.
• Overlooking Tax:Ex-gratia up to £30,000 is tax-free; notice pay may be taxed.

How MBH Solicitors Can Help Wigan Employees

Based in the heart of Wigan, we specialise in settlement agreements for local workers. We offer:

• Plain-English Advice:Every clause explained simply.
• Expert Negotiation:Maximising your payout and protections.
• Local Knowledge:Understanding Wigan’s industries and job market.
• Free Initial Consultation:No obligation, no pressure.

Call MBH Solicitors today on 01942 206060 or book a free consultation online.

Next Steps: Take Control of Your Future in Wigan

A settlement agreement isn’t the end—it’s a new beginning. Understanding your rights is the first step to a fair deal and a confident future in Wigan’s resilient economy.

Don’t go it alone. Contact MBH Solicitors for expert, friendly support. Call 01942 206060 or visit https://www.wigansolicitors.com/contact-us/ to get started. Your fair settlement begins here.(Word count: 796)

Contact MBH Solicitors in Wigan now:

📩 mbh@wigansolicitors.com
📞 01942 206060