--> Settlement Agreement Solicitor London UK Silverman Sherliker LLP Solicitors

T: +44 (0)20 7749 2700

Silverman Sherliker LLP Solicitors
7 Bath Place, London EC2A 3DR

Contact Us

tel: 020 7749 2700

fax: 020 7739 4309


Silverman Sherliker LLP
7 Bath Place
London EC2A 3DR

For further information, please email Nicholas Lakeland or Martin Donoghue or call us on 020 7749 2700.

Settlement Agreement Advice

Settlement Agreements used to be known as Compromise Agreements.

What is a Settlement Agreement? It is a method in which employers and Employees legally settle disputes that may arise under an employment contract. Section 203 of the Employment Rights Act 1996 ("ERA") is designed to stop an Employer in the UK from forcing an employee to sign away their legal rights except where a Settlement Agreement is used.

There are strict conditions as to how a Settlement Agreement must be drawn up if it is to be legally binding.

It is important that the employee should get Independent Advice on all aspects of the Settlement Agreement otherwise it may be open to either party to challenge the validity of the Settlement Agreement later in court.

Care must be taken when drafting Settlement Agreements to specify all of the possible claims that an employee is being asked to settle.

Settlement Agreements must be expressed as being "Without Prejudice and Subject to Contract".

There is no incentive for an employee to sign a Settlement Agreement unless either it settles claims that the employer may otherwise have against the employee.

Typically, an Employer will use a Settlement Agreement when offering an enhanced redundancy package to its employees, part of which includes an ex-gratia payment.

Tax is normally payable on termination payments, unless special precautions are taken in order to avoid this liability.

There are often other employment law issues that need to be addressed in a Settlement Agreement such as pension rights and these issues usually require advice from a specialist solicitor.

If you have an Employment Law question or concern which is not related to a Settlement Agreement please Contact Us for a fixed fee consultation and we will be pleased to provide you with our expert guidance.

For free and impartial advice on settlement agreements, see our Settlement Agreements website.

For further information, please email Nicholas Lakeland or Martin Donoghue or call us on 020 7749 2700.