Settlement Agreement Solicitors for Employers
Helping your business minimise risk, protect its reputation, and reach an agreeable resolution.
Specialist solicitors for Settlement Agreements
When an employment relationship comes to an end, whether through redundancy, conduct or performance issues, or a mutual parting of ways, how you handle the exit matters. A poorly managed departure can expose your business to time-consuming and costly employment tribunal claims, reputational damage, and protracted legal disputes.
Our experienced settlement agreement solicitors help businesses across Wiltshire and beyond bring employment matters to a clean, legally binding close.
What is a Settlement Agreement?
A settlement agreement, formerly known as a compromise agreement, is a legally binding contract between an employer and an employee. In signing it, the employee agrees to waive their right to bring certain claims against the business, such as unfair dismissal, breach of contract or discrimination claims, typically in exchange for a financial payment and agreed terms of departure.
For a settlement agreement to be valid and enforceable, the employee must receive independent legal advice on its terms and effect before signing. Once a business decides that a severance or exit is the right route, a settlement agreement is the legal mechanism that makes it clean and binding.
If you are navigating a dismissal or considering a severance package, it is important to understand your legal position before entering into any conversations with an employee. Our Dismissals & Severance Deals page sets out the five potentially fair reasons for dismissal and the steps you need to follow.
When does a business need an Employment Solicitor?
When an employment relationship becomes difficult to manage, knowing when to act and how, can make the difference between a clean resolution and a costly employment tribunal claim or prolonged dispute. Settlement agreements are a well-established route for businesses navigating performance or conduct issues, redundancy, grievances, and senior exits, but they need to be handled carefully.
Used without proper justification or process, they can damage trust and expose your business to legal challenges. Used at the right time and drafted correctly, they provide certainty for both parties and draw a clear line under a difficult situation.
If you are considering this route, our employment solicitors can help you assess the risks, discuss the timing, and prepare the right terms.
- Act early to avoid disputes and tribunal risk
- Settlement agreements resolve workplace issues effectively
- Suitable for performance, conduct, redundancy, and exits
- Poor handling can damage trust and increase legal risk
- Done right, they provide clarity and a clean break
- Timing and process are key to success
- Legal support ensures the right approach and terms
When is a Settlement Agreement appropriate?
Performance or conduct concerns
Where formal proceedings have become strained or unworkable, a settlement agreement can bring matters to a close without a lengthy process. This helps in saving time, management resources, and the risk of procedural error that could otherwise expose your business to a tribunal claim.
Redundancy situations
Particularly useful where the process carries complexity or risk, such as concerns raised about selection criteria or consultation. A well-drafted agreement removes uncertainty and protects the business from future disputes.
Grievances and workplace disputes
When a working relationship has broken down, a settlement agreement can avoid the disruption and cost of an internal investigation and the unpredictability of an employment tribunal claim, while protecting confidentiality and the wider team.
Senior and executive exits
At senior level, settlement agreements provide a structured way to address bonuses, share options, post-termination restrictions, and internal/external exit announcements with clarity and discretion. In most cases, a well-negotiated settlement agreement is the commercially sensible outcome, for both parties.
Speak to a solicitor
If you’re considering setting up a trust and would like guidance from an experienced solicitor, we’re here to help. Whether you have specific questions or need full support with the process, you can call, email, or visit one of our seven offices.
Call us
With seven offices around the South West of England, we have multiple offices you can call.
Email us
If you would like to drop us an email you can on info@goughs.co.uk
Visit us
With offices in Calne, Chippenham, Corsham, Devizes, Melksham and Trowbridge, you can pop in and see us. View office locations.
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Legal 500
Client orientated; they ensure the client is well informed with easy to read documents.
L C, Devizes
Our Wills were dealt with efficiently, we have already recommended your firm to our daughter and husband. Absolutely brilliant – thank you.
Sue Greenman
Everything was completed professionally and within my tight time scales. I would like to say thank you and would definitely go back to Goughs should I need help in the future.
Legal 500
Goughs gives outstanding customer satisfaction. They are very approachable, reliable, courteous and informed. I would recommend Goughs to anyone.
R F, Melksham
Great service, professional, great communication and handled what was a very sensitive situation with care and compassion.
W D, Calne
Professional, helpful & knowledgeable service. Giving very clear advice in a way I could understand. Thank you.
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