Settlement (formerly compromise) agreements

We regularly assist employers in negotiating tax-efficient termination packages for senior executives and other employees where a quick exit is required to avoid damage to the business and/or the time and costs of undertaking a full dismissal procedure. Such situations need to be carefully handled and we can assist in all aspects including the value of the settlement, the appropriate time to offer a termination package and also briefing notes for your without prejudice discussions.

It is usual to set out the terms of the settlement in a settlement agreement. These are written agreements under which the employee (or ex-employee) will refrain from issuing or continuing legal proceedings, usually in return for a lump sum payment.

We can prepare a suitably worded agreement to protect your business interests and, because the employee is obliged to take legal advice on its terms, can also negotiate settlement on your behalf with their adviser to achieve the best outcome for your business.

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

Telephone: 01737 854 500
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