Employment Settlement Agreements

  • Has your employment ended?
  • Are your employers offering payment in return for you leaving?
  • Do you need legal advice on a settlement agreement?

We are experienced employment solicitors, specialising in Employment Settlement Agreements, previously known as Compromise Agreements.

We can usually offer same-day appointments to advise you on the legal effect of signing the proposed settlement agreement offered by your employer. We can also offer alternative to signing the agreement and can, if required, help you negotiate a better settlement deal.

Whether you’re being made redundant or facing termination, we can help with a settlement agreement. We act quickly and professionally!

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    A settlement agreement is a legally binding contract. Your employer provides you with a lump sum payment to prevent you bringing claims against them. There are lots of different names for these agreements, including termination agreements, compromise agreements, and golden goodbyes.

    The settlement agreement you receive might be different to one offered to a colleague. However, they typically cover notice and holiday pay, termination payments, waivers, contractual benefits, return of property, legal costs, and references.

    Settlement agreements help you achieve a clean break from your employer. They can benefit both parties – they prevent you bringing claims against them in the future, but they can also have advantages for you.

    For example:

    • All discussions and negotiation are confidential, which means they can’t be relied upon in Court
    • In a redundancy situation, you can often have an input on the wording of a reference, which can help you re-entering employment
    • The first £30,000 of a settlement pay is usually tax-free
    • You can part ways amicably and with minimal confrontation.

    A PAYE settlement agreement only becomes binding if you receive independent advice before signing. The person giving the advice must be a qualified lawyer, which in England and Wales means a practicing barrister or solicitor.

    Termination payments are usually tax-free up to £30,000, but any other payments you’re entitled to receive such as salary, holiday pay etc. are taxable.

    In situations where both parties agree that the settlement isn’t taxable, don’t be surprised to be asked for a ‘tax indemnity’ as part of the agreement. This essentially means that if HMRC decides tax is due, you will be liable for it.

    We offer fixed fees for settlement agreements and the costs are usually covered by your employer.



    The next steps

    1. Get in touch

    Contact us to find out more about the Settlement Agreement process or jump straight to booking a consultation.

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    2. Consultation

    Arrange a free 30 minute virtual consultation to discuss your Settlement Agreement.

    3. Review

    We'll advise on whether it's best to accept the agreement proposed by your employer or try to negotiate better terms.

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    4. Negotiation

    If you've decided to negotiate, we will do this on your behalf and liaise with you before submitting it to your employer.

    5. Completion

    Once the offer has been agreed by both parties, we'll receive the funds directly from your employer and forward the cash to you.

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    What our clients say

    "The most efficient, most effective service I have ever had. Kingsley Solicitors provided me with high level, no bull, honest service! Cant recommend highly enough."
    Sheena Cantar

    Contact us today

    Complete the form below with a brief message about your current situation and we will respond within 24 hours. If it is an urgent matter, please call the office on 0845 625 0377 and ask to speak to Lois Kingsley.

      Phone: 0845 625 0377
      Email: lk@kingsleysolicitors.uk

      Click below to arrange an appointment with Lois Kingsley

      Kingsley Solicitors Ltd | Company number 099474428| SRA number 627730