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Settlement agreement advice for businesses

A settlement agreement brings to an end claims such as, unfair dismissal or discrimination arising out of an employee’s employment or termination, other forms of simple agreements signed by employers will not prevent an ex-employee from bringing a claim.

It is important to note that settlement agreements should only be used in circumstances where there are potential claims to be resolved and where there is a genuine dispute in place between the parties. It is not sufficient to rely upon a written or oral agreement between your business and the employee as this will not rule out the possibility of ex-employees bringing claims at a later stage. If executed properly a settlement agreement will remove the risk entirely of any claims being brought at a later stage by an ex-employee.

If you would like to speak to a member of our specialist employment law and HR support team in relation to any aspect of the settlement agreement process please call us on 0161 696 6170 or complete our online enquiry form and we will contact you directly.

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How we can assist businesses with settlement agreements?

  • Our specialist solicitors will ensure that you reduce, as far as possible, the risk of any claims being brought against your business in the future
  • We will ensure that restrictive covenants are provided in this agreement to protect ex-employees from working for a business, taking away business or seeking to take valued employees
  • We will help you negotiate on the amount offered under the agreement
  • We will explain the meaning and effect of the agreement to advise you if anything needs amending or changing
  • We will discuss any additional terms on your behalf as required
  • Bulk and volume settlement agreements - we have extensive experience in achieving a swift conclusion to these exercises on a large scale

Employers can also fall into some difficult traps relating to the taxable position of severance payments which is not always straight-forward. Our specialist settlement agreement for business solicitors can guide you through this process whether on a small or large scale basis.

Bulk settlement agreements

In today’s challenging economic climate, businesses are continuously considering ways to reduce costs. Where circumstances dictate, employers can often be faced with the daunting prospect of embarking upon a large scale exit or redundancy processes.

As an alternative to a long running, and often contentious, exercise of managing out staff, businesses are increasingly turning to alternatives, including offering staff enhanced packages to leave the business.

This provides employees with a guaranteed financial sum to leave their employment whilst at the same time providing the business with the security that the employee’s termination would not become the subject of an employment tribunal claim.

Employees cannot waive their employment rights without taking legal advice from a qualified solicitor. At Stephensons, our dedicated team of experienced solicitors are on hand to provide independent, clear and effective advice to employees to manage their exit in a confidential and mutually agreeable manner.

Fixed cost settlement agreement advice for employers

Employers will usually be required to pay for the costs of the employee’s legal advice. However, we are able to offer a highly competitive fixed price service so businesses can have confidence in their expenditure for this exercise at a time when budgets need to be managed carefully.

Our experience handling settlement agreements in bulk

We have recently concluded an exit scheme with a public body as well as presiding over redundancies within UK arms of international businesses in the London area.


Our settlement agreement for business solicitors are committed to providing a clear line of communication with you to ensure the process runs as smoothly and efficiently as possible. Where appropriate, we can review the draft agreement in advance to identify any preliminary concerns which can be rectified before advice is given to the employees. Due to our extensive experience in this field, we are well placed to spot any legal concerns or pitfalls which may be contained within the draft terms.

If you would like to know more about how we can assist your business with settlement agreements, please contact us on 0161 696 6170.

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