Compromise Agreements 2017-04-26T10:09:08+00:00


We’ve been helping our clients for over 30 years…

If you have been given a settlement agreement, talk to us.

If your employer has offered you a settlement agreement (previously compromise agreement), you are legally required to take independent legal advice. Whether or not you are happy with the settlement, talk to us.


  • Settlement Agreement?

    A settlement agreement is only valid if you have received legal advice. One of our experienced employment specialists can advise you without delay. Your employer will meet the legal fees.

  • Compensation not enough?

    We will advise you whether or not you could be entitled to more compensation. We can try and negotiate an increase. You can pay either a pre-agreed fixed fee or a percentage of any increase.

  • No deal?

    You are not prepared to enter into the settlement agreement at all either because you wish to pursue claims or because the terms are not acceptable. We can advise you on the best course of action.

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How do settlement agreements work?

You are happy to sign the agreement but require legal advice before it can become a binding contract. We will discuss with you the terms of the agreement and advise on the effect. Once you are happy with all aspects of the agreement, you can sign and return it to your employer. We are normally able to provide this advice on the same day that we receive a copy of your agreement. The agreement will normally provide that your employer will pay the legal fees associated with obtaining the independent advice. You should, therefore, have nothing to pay.
In some cases, the settlement payment may be negotiable. We will advise you on your entitlements and whether or not you may be able to achieve an increase in compensation. If so, we would approach your employer on your behalf and request a larger payment. If you wish us to act for you on this basis, our costs would be either one-third of the increase (the difference between the final offer and the original offer) or a pre-agreed fixed fee.
You are not prepared to enter the settlement agreement because you intend to pursue your claim(s) in the employment tribunal or because the amount of compensation offered is not sufficient to persuade you to waive all your claims. We can advise you on your potential claim(s) and compensation. If you confirm that you wish to reject the offer of settlement and proceed, we can discuss the ways in which you can fund your employment tribunal proceedings. Contact us today for a free review of your situation.

Frequently Asked Questions

A settlement agreement is a contract between you and your employer in which you agree to accept a sum of compensation and/or other benefits in return for the waiver of your right to pursue employment-related claims. In effect, it is an out-of-court settlement of those claims.
The law states that employment rights can only be waived by agreements that fulfil certain conditions, one of which is that you have received legal advice on the terms and effect of the document you are being asked to sign.
At the time it is presented to you and before you and your employer sign it, the settlement agreement is the first offer. You can choose whether to accept or reject it. You may make a counter-offer and begin a negotiation. Some employers may increase their offer and others may not. Signing the agreement will cause it to become legally binding and prevent further negotiation.
The settlement agreement would normally contain a term providing that the employer would meet the legal fees up to a prescribed figure. This only applies if the agreement is signed and becomes binding. The cost of negotiation would have to be met by you and would be discussed with one of our specialists before proceeding.

What Should I Do?

If you have been given a settlement agreement by your employer, pick up the phone and one of our experienced specialist advisors will be on hand to deal with you straight away. We will review your agreement and situation at no cost to you and give you the appropriate advice depending on your requirements.