Settlement Agreements

Achieve the maximum value possible from your Settlement Agreement

At GLP Solicitors, we are Experts in Employment Law and advising on Settlement Agreements. We are here to give you the best advice so you can make an informed decision.

For more than 50 years, we have advised employers and employees to enable them to achieve the maximum value possible from their Settlement Agreement. 

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What is a Settlement Agreement?

A Settlement Agreement is a legally binding contract between the employer and the employee. The contents of this contract must be agreed by both parties. This document provides information about the termination payments and the agreed terms of the termination of employment. In simple words, this agreement provides the mechanism to terminate your employment; in essence, you sign away your right to pursue any claims in exchange for an agreed sum of money.

Regardless of the nature of the Agreement, this legal resource is recognised and encouraged by the UK Government. 

Benefits of a Settlement Agreement 

For the employee: A Settlement Agreement gives the employee the security of a termination document with detailed information as to what financial settlement they are to receive alongside other important aspects of the termination. 

For the employer: A Settlement Agreement gives the employer the guarantee that no claims will be made in the future by the employee. 

Typical terms and sections in a Settlement Agreement

The amount of basic pay that an employee would have earned for the notice period to which they were entitled, less any period of notice worked. 

A date on which a contract ends. 

Refers to the end of an employee’s employment with a company. The Termination of employment can be voluntary or involuntary when a company downsizes or makes employees redundant. 

A Settlement Agreement usually includes a tax indemnity clause. This means that if the HM Revenue and Customs (HMRC) determines that your payment should have been taxed, they will contact your employer as this amount has to be deducted via PAYE. If this demand comes through, you will have to pay the tax on that payment. 

Why GLP Solicitors?

GLP Solicitors have more than 50 years of experience dealing with Employment matters. Our Team of Experts offers: 

  • The best personalised legal advice.
  • A direct communication channel with our Experts.
  • Regular updates on your case. 
  • Advice that helps you understand your legal rights. 

Frequently Asked Questions

No, you don’t have to accept a Settlement Agreement. In fact, your employer should give you a reasonable period of time in which to consider your response. Your decision should be based on the value of the offer, your situation and any future claims you may have against your employer. 

Yes, you do. For a Settlement Agreement to become legally binding, you will need to use the services of a Solicitor as an essential aspect in obtaining comprehensive legal advice. 

Your employer is responsible for covering all the legal costs of this process. 

If you have been offered a Settlement Agreement, contact GLP Solicitors immediately to obtain comprehensive legal advice. Remember that you must use the services of an independent Solicitor and this cost is covered by your employer.