Settlement (Compromise) Agreements


A settlement agreement is a written agreement in which an employee or ex-employee agrees not to make a claim against their employer, usually in return for a financial settlement.

Typically the employee is asked to sign a settlement agreement because there is a dispute with the employer. Alternatively, particularly where the employee is paid more than the statutory minimum, the employee is routinely asked to sign such an agreement before receiving their termination payments.

Because you are waiving statutory rights in the agreement e.g. the right to claim unfair dismissal or discrimination, you are required to seek legal advice on the contents.  Usually the employer will contribute towards the employee’s legal fees in seeking such advice.

We can advise you on issues such as whether you are receiving your full entitlement to notice pay and other final payments and benefits, assess the merits and potential award of any tribunal claims and on the terms of an agreement to ensure it is drafted in your best interests. We can be involved in any negotiations on your behalf to increase the financial offer, advise you ‘in the background’, or simply advise you on the terms before you sign the agreement.

We have prepared a question and answer brief to answer questions we are often asked about settlement agreements. Please contact us if you would like a copy of this by telephone on 01737 854 573 or by email to joanne.kavanagh@morrlaw.com.

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