Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

In this article Chris Hadrill, a specialist employment solicitor at Redmans, explores what settlement agreements are and gives some tips on what you should do if you have been offered one

What are settlement agreements? A quick guide

An employee has the right to bring certain claims against their employer, whether such claims can be brought under statute (for example, unfair dismissal or discrimination claims), contract (for example, a failure to pay a bonus), or tort (for example, negligence claims). Such claims may arise on the employee’s recruitment, during the course of their employment, or upon termination. In certain circumstances an employer may wish to agree to provide the employee with benefits (e.g. a payment of compensation, a reference, sometimes an apology) in return for the employee’s agreement that they will waive their right to bring such claims, or withdraw them if they have already issued a claim. This may happen where employment is continuing, but it is most common for the parties to do so where employment has terminated (or is about to do so).

Employees can only agree to settle or waive most statutory claims by one of the following means:

  • If an agreement is reached through ACAS (and recorded in a COT3 agreement); or
  • If such agreement is recorded in a settlement agreement that complies with various statutory requirements (for example, the agreement must be in writing and the employee must receive independent legal advice on the terms and effect of the agreement)

Only certain statutory claims may be settled by a settlement agreement including, among others:

  • Claims for unfair dismissal;
  • Claims for a statutory redundancy payment;
  • Claims for discrimination, harassment, victimisation or detriment;
  • Claims for detriment or dismissal because the employee has ‘blown the whistle’;
  • Claims in relation to the national minimum wage;
  • Claims in relation to unlawful deduction of wages

Until July 2013 statutory agreements of this nature were renamed from “compromise agreements” to “settlement agreements”, although it is not clear why this change was made.

What should you do if you have been offered a settlement agreement?

If you’ve been offered a settlement agreement by your employer then one of the first things that you should normally do is fine a suitable specialist employment solicitor to advise you on your agreement: your employer will normally cover an agreed level of legal fees for the advice and you must receive legal advice from an independent legal adviser on the terms and effect of the agreement for the settlement agreement to be binding. However, it is up to you to choose how much or how little work you want your solicitor to do: most employees will, in my experience, want their solicitor to handle the negotiations on the agreement as well as the advice, but in some circumstances the employee may be best-placed to negotiate the terms of the agreement themselves (for example if they have a good existing relationship with senior management handling the negotiations or if they wish to keep the costs of the negotiation as low as possible).

Why should you choose Redmans to advise you on your settlement agreement?

Redmans have advised thousands of clients on their settlement agreements, and our specialist employment solicitors have dealt with agreements worth £1,000 to settlement agreements worth over £1 million.

If you want to discuss your settlement agreement further please contact our enquiries team by telephone on 020 3397 3601 or email Redmans using the following email address: enquiries@redmans.co.uk.

About Chris Hadrill

Chris is a specialist employment lawyer at Redmans. He specialises in contentious and non-contentious employment matters, including breach of contract claims, compromise agreements and Employment Tribunal cases. He writes on employment law matters on a variety of websites, including Direct 2 Lawyers, Lawontheweb.co.uk, LegalVoice, the Justice Gap and his own blog. Contact Chris by emailing him at chadrill@redmans.co.uk

Tagged with →  
Share →

Our awards

Request a callback

Your name

Your email

Your telephone number

Contact us

Please feel free to discuss your own position and concerns. Contact your nearest office on:

T: 020 3397 3603
E: enquiries@redmans.co.uk
W: www.redmans.co.uk


4.64 Average

28 Reviews


Excellent service from initial contact to deliverables.

Posted 5 hours ago

Virginia K

Yes, Chris Hadrill answered all my questions and I feel more confident with my current situation

Posted 6 hours ago


Chris Hadrill was referred to me my a friend of mine. I found the service to be efficient, quick and like Chris's direct approach to my work. Well done and thank you Chris!

Posted 1 day ago

Andy W

Very prompt & structured service that helped put my mind at rest at a difficult time

Posted 3 days ago


I have found Redmans to be very helpful, diligant and thoroughly professional when dealing with them, plus they gone that extra mile for me !

Posted 3 weeks ago


Thank you to Chris Hadrill at Redmans for his assistance in settling my case. I contacted him at the very last minute and he was happy to help me and managed to get everything done on time and in a very professional manner. I will definitely be happy to work with him again .

Posted 3 weeks ago

Redman's provided excellent legal employment advice for me during a difficult time in my employment. Chris was my lawyer, super efficient, quick, reliable and clearly very experienced in the matter. Could not ask for a better law firm to deal with your query if you are in need of some help. Would definitely use them again in the future. Highly recommending Chris.

Posted 4 months ago


Chris Hadrill was very professional and responsive. I would highly recommend him

Posted 4 months ago


Very Efficient, with very quick email reply’s. I had a matter that needed resolving within a very short space of time and Redmans Solicitors were great with dealing with my matter quickly.

Posted 4 months ago


At Redmans the solicitor that was dealing with me was Chris. He dealt with my situation smoothly with clear guidance and explanation

Posted 4 months ago


Clear, concise advice and guidance delivered by an experienced and very capable solicitor, within the timelines required

Posted 5 months ago


Very efficient service. I never had to wIt for more than a day for a reply to any of my queries and the matter was dealt with swiftly.

Posted 5 months ago


Very timely, thorough and helpful advice. Friendly and considerate of the needs of the client

Posted 5 months ago


Very prompt and attention to detail. Thank you for the service

Posted 5 months ago


Couldn’t be happier with how Redmans successfully handled our seemingly tricky case. By being clear and detailed every step of the way, with the utmost professionalism and courtesy, they made it an informative and eye-opening process, taking the stress out of the situation and ultimately delivered what you would want from such a service. I fully appreciate everything they have done, and if I am ever in need of such services in the future, they will be the first number I contact. Excellent.

Posted 5 months ago


Excellent work delivered with great quality

Posted 5 months ago


Chris Hadrill was a great help both in terms of his advice and his expertise. He explained my options to me clearly and concisely enabling me to quickly make the right decision for me in the circumstance. I would not hesitate to recommend Chris or Redmans to friends or colleagues, and would certainly make Redmans my first port of call should I require a similar service in the future.

Posted 5 months ago


Redmans gave excellent advice and helped me understand everything in clear concepts. Thank you!

Posted 5 months ago


Resolved my issues

Posted 5 months ago


Quick fast professional service.

Posted 5 months ago


"Prompt, efficient and practical advice that resulted in me getting some additional money tax free."

Posted 5 months ago