Settlement Agreements for Employers

Settlement Agreements for Employers


As an employer, managing employee departures, resolving disputes, or restructuring your workforce can be challenging. Our specialist solicitors offer comprehensive services on settlement agreements, including expert advice on holding protected conversations, drafting bespoke agreements, and negotiating favourable terms. We help businesses across the Northwest and the UK to minimise risks, ensure compliance, and achieve good outcomes.

Tailored Legal Solutions for Employers
From initiating protected conversations to finalising negotiated settlements, we provide end-to-end support. Our competitive fees are transparent, with no hidden costs, delivering exceptional value for your business.

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Key Benefits of Our Settlement Agreement Services for Employers
Partnering with our experienced employment law solicitors ensures your business is protected. Here's how we add value:

  • Protected Conversations Guidance: Learn how to conduct off-the-record discussions safely under Section 111A of the Employment Rights Act 1996, avoiding unfair dismissal claims.
  • Custom Drafting: We create tailored settlement agreements that include essential clauses like confidentiality, non-disparagement, and restrictive covenants to safeguard your interests.
  • Skilled Negotiation: Our team negotiates terms to reduce financial exposure, secure references, and prevent future litigation.
  • Compliance Assurance: Ensure your agreements meet ACAS guidelines and UK employment laws, reducing the risk of tribunal challenges.
  • Cost-Effective Resolutions: Avoid lengthy disputes by facilitating quick, amicable settlements.

Understanding Settlement Agreements for Employers
A settlement agreement (formerly known as a compromise agreement) is a legally binding contract that waives an employee's right to bring claims against their employer in exchange for agreed terms, such as a financial payment. It's commonly used in redundancies, performance issues, or disciplinary matters. As an employer, you must ensure the employee receives independent legal advice, and we can guide you through this process.

Our Step-by-Step Process for Employers

  • 1. Initial Consultation: Discuss your situation confidentially with our solicitors to assess the best approach.
  • 2. Protected Conversations Advice: Guidance on initiating discussions without prejudicing your position.
  • 3. Drafting the Agreement: Prepare a custom document outlining terms, payments, and protections.
  • 4. Negotiation Support: Handle negotiations with the employee or their advisor to reach a mutually beneficial outcome.
  • 5. Finalisation and Compliance: Review and execute the agreement, ensuring all legal requirements are met.
  • 6. Post-Agreement Support: Advice on implementation and any ongoing obligations.

Local Support Businesses
Our firm understands the unique challenges faced by employers in different regions. Whether you're a Wigan based professional services firm, a Manchester manufacturing company, a Liverpool retailer, or a nationwide hospitality business, we provide localised advice informed by regional employment trends.

Secure Your Business with Expert Advice
Don't risk non-compliance or costly disputes. Contact our employment law specialists for advice on protected conversations, drafting, and negotiating settlement agreements.

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Frequently Asked Questions for Employers

What are protected conversations and when can they be used?
Protected conversations (under s111A ERA 1996) allow employers to propose settlement agreements without the discussion being admissible in unfair dismissal proceedings, except in cases of improper behaviour. They're ideal for mutual terminations but not for discrimination claims.

How much does it cost to draft a settlement agreement?
Costs vary based on complexity, but we offer fixed-fee options for straightforward cases. Contact us for a personalised quote tailored to your business needs.

Can we include restrictive covenants in the agreement?
Yes, we can draft enforceable post-termination restrictions to protect your business, such as non-compete or non-solicitation clauses, ensuring they comply with UK law.

What if the employee refuses the settlement?
If negotiations fail, we advise on alternative options like performance management or redundancy processes, always prioritising your business interests.

How long does the process typically take?
From initial advice to signed agreement, it can take 1-2 weeks, depending on negotiations. We prioritise efficiency to minimise disruption.

Request a Consultation


Consult right now with our experienced team for complete solutions to your legal issues.

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Request a Consultation


Consult right now with our experienced team for complete solutions to your legal issues.

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