Settlement Agreements

Our Settlement Agreement Service

What are Settlement Agreements?

Workplace problems can sometimes arise for a variety of reasons, including the poor performance of an employee, their behaviour, or perhaps an employee feeling discontented about their work or the manner in which they believe they are being treated. In some cases, the employer may want to dismiss the employee (or want the employee to leave on agreed terms), or the employee may be the one who wants to leave.

It could be that the business of the employer is not doing well and employee redundancies are likely. An employer and an employee may be gearing up for an employment tribunal claim or other court proceedings to do with the employment. In such circumstances, it may be beneficial for the parties to enter into what is known as an employee settlement agreement.

Settlement agreements are a means by which an employer and an employee can agree to part ways, when it comes to the employee’s employment, on agreed terms. The agreed terms in a settlement agreement can include provision for a sum of money to be paid by the employer to the employee in consideration of the employee agreeing to the terms, which would usually include waiving rights to bring an employment claim in the future.

Valens Solicitors are settlement agreement solicitors in Watford who are experienced in handling a variety of agreements and ensuring the best outcomes for all.

The importance of legal advice

A settlement agreement is usually a legally binding agreement. We therefore recommend that you take legal advice before entering into one. If you are an employer, you should require that the employee takes independent legal advice before signing a settlement agreement that you have proposed, as a failure to so do could later lead to an assertion by an employee that they did not know what they were agreeing to.

To take advantage of our extensive legal expertise, please get in touch with our settlement agreement solicitors today on 020 3368 3970 or click below to book a free, no-obligation consultation.

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Our Expertise

As settlement agreement solicitors, we can help both employers and employees to prepare, understand, and agree settlement agreements. We can assist with the whole settlement agreement process in an efficient, cost-effective and professional manner..

Where we can help
  • Advice on legal rights and potential claims
  • Advice on offering an employee a settlement agreement
  • Advice on terms of a settlement agreement
  • Drafting settlement agreements
  • Negotiating terms of settlement agreement
  • Advice on warranties and obligations
  • Negotiation of post-termination restrictive covenants
  • Mediation
  • Without prejudice negotiations
  • Advice on breaches of a settlement agreement
  • Finalising settlement agreements

If you are an employer, we can advise you on preparing a settlement agreement, and act on your behalf in communications with the employee or the employee’s representative.

If you are an employee, we can advise you on all aspects to do with a proposed (or completed settlement agreement). If you are considering entering into a settlement agreement, in consultation with you, we will carefully review the draft settlement agreement that you receive, and advise you as to the meaning and effect of the terms contained in it. We would also be able to discuss whether it would be advisable to consider negotiating any of the terms so as to improve the overall settlement offer that has been made to you.

Why choose Valens Solicitors?

We recognise that all our clients are unique, and that they have varying requirements and objectives. We focus on our clients and if you instruct us, we will be on your side. We will work with you when you have challenges and help you overcome them in an efficient and cost effective manner.

To take advantage of our extensive legal expertise, please get in touch with our settlement agreement solicitors today on 020 3368 3970 or click below to book a free, no-obligation consultation.


Frequently Asked Questions

Are Settlement Agreements and Compromise Agreements the same thing?

Employment compromise agreements were renamed settlement agreements by the government in 2013, and they have the same legal effect. We deal with employee settlement agreements on behalf of the employer or the employee, and we offer professional advice throughout the whole process.

What payments are included in the Settlement Agreement?

The Settlement Agreement will breakdown exactly what is owed to you. It will deal with any notice payment if this is not going to be worked, and any bonuses and commission that are owed. Pension contributions should continue during a notice period, and there will need to be negotiations around the ongoing loss of pension if a final salary pension scheme is in place.

Some employers may want to offer a lump sum to be paid into a pension as part of the settlement terms. If medical or life insurance is offered as an employee benefit, then we will look at whether the employee is entitled to remain within the scheme for the period up to which the employer has paid or whether it will be terminated on the last day of employment.

Do I pay tax on the money I receive?

Usually, the sums owed to you will be subject to tax, however, redundancy and compensation can be treated as damages, which are tax exempt up to £30,000. We can provide professional advice on the tax implications of your settlement agreement.

When will I receive my money?

Compensation is usually paid 7-21 days after all parties have signed the Settlement Agreement. In some cases, certain payments might be dealt with by payroll on the usual payroll date.

If you have received a Settlement Agreement or are looking to have one prepared, contact our team of experts at Valens Solicitors for a no-obligation consultation.


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The wonderful team at Valens was extremely helpful and walked us through the process every step of the way.

Valens Solicitors’ wealth of knowledge offered me numerous solutions and supported by their clear and concise explanations I was able to make a well-informed decision.

I am grateful for all the advice I received and felt it was all given in my best interests.

Everyone I dealt with at your office was well informed, helpful, professional and a great reflection on Valens Solicitors.

What I like about your firm is the quick and clear communication.

Thanks again for everything you have done. You made the process very easy for me.

Our expert team

Chander Bagga

Principal Solicitor

Cyril Dennemont

Consultant Solicitor

Dee Douglas

Consultant Solicitor

Nese Malik

Licensed Conveyancer

Domenico Sidoli

Consultant Solicitor

Vincent Tong

Consultant Solicitor

Rachele Strata

Trainee Solicitor

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