If you’re leaving your job or resolving a dispute with your employer, you may be offered a settlement agreement. This is a legally binding document where you agree not to pursue any future claims against your employer—usually in exchange for a financial payment. Before signing, it’s essential to get independent legal advice.
Hutchinson Thomas / For individuals / Settlement
We regularly advise employees on:
• Reviewing and negotiating settlement agreements
• Understanding the financial and legal implications
• Ensuring all appropriate benefits are included
Our experienced employment law solicitors will guide you through the process, offering clear advice and strong representation to secure the best possible outcome.
A settlement agreement typically includes:
• A lump sum payment in exchange for waiving legal claims
• Confidentiality clauses about the agreement and your employment
• Restrictions on future employment (e.g. non-compete or non-solicitation clauses)
• Terms relating to references, benefits, and post-employment obligations
We’ll help you assess whether the terms are fair and reasonable—and negotiate improvements where needed.
Your employer should provide a breakdown of the financial offer, which may include:
• A tax-free lump sum (up to £30,000)
• Payment in lieu of notice
• Outstanding holiday pay
• Bonuses or commissions due
We’ll ensure the offer reflects your entitlements and explore additional benefits—such as a positive reference or retention of work equipment (e.g. phone, laptop, or car).
Because a settlement agreement involves waiving your rights, you must take independent legal advice by law before signing. Employers usually contribute to the cost of this advice.
We’ll explain:
• What rights you’re giving up
• Whether the financial offer is fair
• The impact of any restrictive covenants or confidentiality clauses
• Expert advice on settlement agreements and employment disputes
• Strong negotiators focused on securing the best deal for you
• Friendly, approachable team with extensive experience
• Recognised in The Legal 500 and awarded the Law Society Mark of Excellence
Our specialist commercial lawyers offer a one-stop-shop for legal advice for all types of business – from start-ups to established companies.
All of our lawyers are specialists in their area of law. Book in for an initial discussion where we will discuss all of your options with you.