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MJD Solicitors

Settlement Agreements in employment law

Settlement Agreement Solicitors

Whether you’re an employee who has been offered a settlement agreement or an employer looking to create or negotiate a settlement agreement, the experts at MJD Solicitors are here to help secure the best possible outcome.

With years of experience, our settlement agreement lawyers provide practical, independent and reliable legal advice to both employers and employees. From drafting and reviewing settlement agreements to negotiating on your behalf, our solicitors work to ensure that the terms are fair to help reach a resolution that everyone is happy with.

What Are Settlement Agreements?

A settlement agreement is a contract between an employer and employee that is signed either shortly before or following the termination of employment, usually where the employer requires the certainty that any disputes and claims have been fully resolved.

Settlement agreements typically cover things such as;

  • The terms under which the employee will leave the company including things like notice period and termination date
  • What compensation the employee will receive in the form of a termination and redundancy payment as well as pensions and legal fees
  • The provision of benefits, outplacement services and references

In exchange for this compensation, the employee will agree to give up any employment claims they may have against the employer such as unfair selection for redundancy or unfair dismissal.

For a settlement agreement to be valid it is necessary for an employee to have taken independent legal advice. Usually, the solicitor advising the employee signs the settlement agreement confirming such advice.

Settlement Agreement Services

At MJD Solicitors we regularly advise clients on settlement agreements of various types and have experience working for employers and employees across a wide range of industries.

Our settlement agreement services are designed to ensure that you receive effective and relevant legal advice for your circumstances to help you make informed decisions and increase the chances of a positive outcome.


Settlement agreements are usually drafted by the employer and come with statutory requirements that must be met to guarantee that the contract is legally enforceable. One of the key aspects of this is that employees must receive independent legal advice, usually from an independent solicitor, and a settlement agreement is not legally binding unless the employee has obtained the appropriate legal advice.

At MJD Solicitors, we provide employees with specialist settlement agreement services that help employees navigate the termination of their employment and ensure the terms are fair. This can include things like:

  • Reviewing the draft document
  • Talking you through the legal contract and answering any questions you may have
  • Explaining the terms and outlining what the employer is offering, and which obligations will apply
  • Assessing if the level of settlement offered is fair
  • Ascertaining if the employer has met all of their contractual obligations regarding things such as bonus payments, commissions owed and other payments due
  • Providing a signed letter confirming that you have received legal advice regarding your settlement agreement


Proposing a settlement agreement at an early stage is an efficient and cost-effective way of resolving employee disputes before they end up in litigation, removing the stress, expense and risks that come with an employment tribunal claim.

Our employment lawyers are experts in settlement agreements and can provide crucial advice and guidance on key aspects such as;

  • Drafting a settlement agreement
  • Facilitating settlement agreement legal advice for employees
  • How to approach the discussion or situation as well as possible outcomes and issues that may arise
  • Assistance in calculating what figure should be offered in the settlement agreement
  • Help to negotiate if required
  • Suggestions for relevant clauses that should be included

Who Will Pay the Solicitors Fees?

Employers will often prefer to avoid lengthy, drawn-out and expensive legal disputes and tribunals, wanting to get claims settled quickly and discreetly, which is why the privacy and certainty of a settlement agreement is generally best for both parties.

Because the settlement is not binding without the employee receiving independent legal advice, this is usually provided to the employee at no cost to themselves, with the employer paying the fees or contributing enough to cover most of them.

At MJD Solicitors, our rates are extremely competitive, and we are transparent about our pricing so will be happy to provide you with a full breakdown of the potential costs from the outset so that you know what to expect.

Find Out More

Whether you’re an employer or an employee, MJD Solicitors can provide professional and reliable guidance and advice on settlement agreements to help reach a conclusion that works for everyone.

If you have any questions or need assistance with a settlement agreement and would like to find out more about our services, then please get in touch or call – 01277 280 761.

MJD Solicitors | Matthew Dillon

Matthew Dillon