Settlement agreements

A settlement agreement, formerly known as a compromise agreement, is an agreement reached between an employer and an employee under which the employer will agree to pay the employee a sum of compensation in return for the employee giving up the right to make a claim in the employment tribunal.


A settlement agreement must be in a specific form for it to be effective and the employee must take legal advice from an independent solicitor.


Settlement agreements have become increasingly complicated over the years, so that now it is not uncommon for them to run to 20 pages or more. Regardless of whether you are an employer who needs a settlement agreement drafting, or an employee who needs to take advice on a settlement agreement, it is vital to take advice from specialist settlement agreement solicitors who have extensive experience of advising on settlement agreements.


Leading Manchester employment lawyers Martin & Co, advise on hundreds of settlement agreements a year, both for employers and employees. We are so well known for this that we recently advised 50 employees of a multinational oil company who were closing their offices in Manchester. We deal with numerous settlement agreements every week, so our expertise in this area really is second to none. We are the leading solicitors for settlement agreements in Manchester and indeed we advise clients throughout the country on settlement agreements, as whilst ideally we prefer to advise a client in person, we are happy to advise remotely by telephone or e mail.


An employer will usually pay an employee’s legal fees for taking advice on the settlement agreement, and the fee tends to range from £250 to £500, therefore, it should usually not cost an employee anything.




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