Drafting Settlement Agreements – Employment Law Solicitors
With the furlough scheme having closed at the end of September 2021 and businesses still adjusting to a post-Brexit era, employers have started planning ahead and thinking about their future, with workforce and business requirements top of the agenda. An increase in redundancies has been forecast, with almost one million workers still on furlough when the scheme closed.
Attwells Solicitors support business owners from SMEs to large corporations with practical, commercially focused and pragmatic legal advice.
If you are thinking about making employees redundant, undertaking pre-termination negotiations, or need support with HR issues, Attwells can help. Likewise, we can support your business with finance agreements, shareholder, partnership agreements, mergers and joint acquisitions.
What is a settlement agreement?
Settlement agreements (formerly called compromise agreements) are legally binding agreements that set out the full terms of an agreement between an employer and employee, whereby an employee agrees to sign away their rights to bring a claim against their employer in return for a cash sum.
Settlement or compromise agreements are generally offered to employees when a dispute in the workplace arises, a redundancy process is being undertaken or when employee misconduct is alleged. They can also be used when settling potential or actual Employment Tribunal claims.

Drafting a settlement agreement fixed fees
Short Form
- A simple agreement between an employer and employee to terminate an employee’s contract, as well as compromise the employee’s contractual and statutory claims
- We can provide advice on settlement agreements to employees too.
Long Form
- Restrictive covenants
- Garden leave provisions
- Intellectual property rights
- Resignation of Directorship
- Return of company car
Drafting a comprehensive agreement
A comprehensive agreement between an employer and employee to terminate an employee’s contract as well as compromise the employee’s contractual and statutory claims.
What is included in the price?
Initial telephone conversation
Brief review and assessment of your current employment documents (where necessary)
Tailored advice depending on your business needs, sector and circumstances
Drafting your requested document(s)
Sending you a draft of the document for approval
Implanting any requested amendments
What is included in the price?
Meeting at your local office with a specialist employment lawyer (can be arranged at additional cost)
Meeting at your business premises (can be arranged at additional cost)
Tax advice
Legal advice outside of the service requested
Our approach to negotiating settlement agreements
Our approach to settlement agreements is to offer fixed fee advice. Therefore, you will never receive an unexpected bill. Equally as part of our jargon-free law promise, we will unravel the complex nature of employment law and the terms used.
Partner, Lloyd Clarke has significant experience in all types of workplace disputes, not just settlement agreements. This includes the bringing and defending of Claims in the Employment Tribunal Court.
Attwells are proud to state that we always achieve a high rate of success for our clients. Our Feefo and Review Solicitor rating reflects this too.
Recommend Your Employees - Settlement Agreement Legal Advice
- Initial telephone conversation
- Review of documentation in advance of drafting letter of advice (subject to reasonable number of documents)
- Meeting at your local office with a specialist employment lawyer
- Summary of advice at conclusion of meeting setting out the legal position
What are the common terms of a settlement agreement?
A tax free compensation sum payable to the employee (up to a maximum of £30,000)
Confidentiality clause.
Signing away of employment rights by the employee.
A financial contribution towards the employee’s legal fees in obtaining advice on the agreement.
The requirement for an independent Solicitor to sign the agreement confirming that they have advised the employee on the terms of the agreement.
What is excluded from the service?
Subsequent letter of advice.
Tax advice.
Advice on benefits
Legal advice outside of the service requested
How long will it take?
The meeting itself will last around 1 hour and, subject to your availability, we would aim to hold the meeting with you within 48 hours of your initial call or earlier if required. Same day appointments can be made.
What can we cover in the meeting?
Contracts of employment, policies and procedures and other employment documentation
Self-employed contracts including IR35
Director’s service agreements
Settlement negotiations
Settlement agreements
Restructuring, re-organisation and redundancy exercises
TUPE, business transfers and outsourcing
Disciplinary, dismissal and grievance issues
Performance management issues
Poor health, absence management and dismissals
Employment disputes
Restrictive covenant and breach of contract disputes
Discrimination issues
Directors and shareholder disputes and exit planning