Settlement Agreements and Compromise Agreements
If you’ve landed on this page, you’ve probably been talking to your employer about a Settlement Agreement (known as a Compromise Agreement if you’re in Northern Ireland). This article tells you what you need to know.
What is a Settlement Agreement?
Before we get stuck into the detail, here’s a beginner’s guide to the legal terms that are useful for you to understand:
- Settlement is the amount of money offered by your employer
- Agreement is the contract that you and your employer negotiate
- Settlement Agreement is the legally binding document that both parties sign
- Compromise Agreement is the term used in Northern Ireland (and formerly used in England, Wales and Scotland)
- Legally binding means that you and your employer are bound by the terms of the agreement. If either party breaches the agreement, they are breaking the law
It’s important for you to become familiar with these terms as you move through the settlement process.
Read on to find out more…
Why is a settlement agreement or compromise agreement a good idea?
You might have heard the phrase “settle on the court steps”, or seen it depicted in films. You don’t have to be actually on the court steps (although that is possible). The expression often means that agreement is reached sometime – any time – before you actually get to the court (or the tribunal, in the case of employment disputes).
Employers tend to prefer to settle in advance of a tribunal case, because going to court can be expensive, time-consuming and risky. Settling early means everyone knows where they stand and can move on quickly.
Knowing about this tendency puts you in a strong negotiating position from the start, and means you don’t have to accept your employer’s first offer.
Been offered a settlement agreement or compromise agreement?
Before you sign anything, please give us a call – it’s FREE. We’ll discuss your options so you discover whether the amount you’ve been offered is fair. We’ll may be able to help you negotiate a better deal, and have the expertise to support you throughout the legal process.
Make a FREE enquiry today: Call 0808 168 7288 or fill in the form
“I’d like to say a massive thank you for driving a pleasing resolution to my dispute. I endured a very difficult time with this company which left a distressing impact. Having had this situation resolved with a fantastic outcome, I can move forward with my life and look towards a brighter future, thanks to Paul Doran Law.”
Julie A
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When might you be offered a Settlement Agreement?
Usually, you get offered a Settlement Agreement if you’ve been made redundant.
The other situation is when your employer has broken their contract with you in some way, such as by having discriminatory policies that disadvantage you, or by allowing you to be harassed or otherwise mistreated in the workplace.
What does your employer agree to?
Your employer agrees to pay you a sum of money as compensation for giving up your right to take them to the employment tribunal.
They might also offer other things you want, such as writing you a good reference. That’s one of the reasons why taking advice from a specialist solicitor (like us) can help. As employment lawyers, we are dedicated to negotiating with employers to help employees get the best settlement deal, and have years of success stories we could share.
As the employee, what do you agree to?
It’s not a one-way street. You get things you want from your employer (such as money), and they get things they want from you – that’s the ‘agreement’ part of the deal.
In return for your settlement payment, you agree not to make a future complaint about your employer to a tribunal.
Your employer might also ask for other things, such as you keeping the arrangement secret or agreeing not to take a job at a company that competes with them.
As explained above, we have the negotiation skills that will arrive at the best outcome for you.
About us: At Paul Doran Law, we specialise in employment law – this includes settlement and severance matters as well as claims about equal pay, discrimination, unfair or constructive dismissal, and unpaid wages or holiday pay.
We’re on your side: We only act for employees who find themselves in a dispute with their employers.
About you: Whether you work for a multi-national corporation, public sector, private sector or small employer, we can help. We act for clients in Northern Ireland, England, Wales and Scotland.
Easy payment options: You’ll have a choice of ways to fund your claim, including no-win, no-fee. Often, your employer will pay our fee.
What next: Give us a call today for friendly, clear and honest advice about your case. The initial consultation is FREE and with no obligation.
“Paul Doran Law secured a settlement beyond my expectations, which I couldn’t have done personally. They were completely professional, efficient, and fast. I didn’t have to do a thing. All the stress was taken away from me.”
Joan W
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What makes a Settlement Agreement legally binding?
Because a Settlement Agreement is a legal document, you must take advice from an independent solicitor – it’s the law. Don’t worry, your employer will usually pay our fee.
As well as the agreement being signed by you and your employer, we sign it too, to certify that we’ve given appropriate advice.
How does Paul Doran Law help?
Here are some of the ways we can help with your Settlement Agreement:
- Tell you whether the initial settlement offer is reasonable
- Approach your employer to negotiate a better deal
- Advise if you’re entitled to compensation because your employer has discriminated against you, or not followed the proper process
- Explain any restrictive covenants that your employer wants to enforce against you
- Seek to get you a good reference to use when applying for a new job
We act for clients throughout the UK, and have offices in Belfast, Leeds, London and Newcastle – but note that you don’t even have to visit us in person, as all our advice can be given over the phone.
“I was already very satisfied with the first contact with the new claims team. They took the time to listen to my story. Then my solicitors explained the options and negotiated a great compromise agreement. Overall, I am very satisfied.”
Mrs Afki
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Settlement Agreements and Compromise Agreements: What to do next?
If your employer has already made you an offer, they usually pay our costs. If you’re the one that’s approaching them to start negotiations, we’ll give you a fixed fee quote and explain the funding options.
Either way, it’s important to ask us for advice as early as you can, because this gives us the best chance to help you.
As stated above, please give us a call before you sign anything. By law, you have to discuss the settlement with an expert like us. And when you get in touch, the first conversation is absolutely FREE!
In this initial chat, we’ll let you know if the amount you’ve been offered is fair, and let you know if we could help you negotiate a better settlement.
Remember, in most cases, our advice won’t cost you a penny because your employer will pay our fee. Once your employer has already made you an offer, they usually pay our costs.
Make a FREE enquiry today: Call 0808 168 7288 or fill in the form
Related reading: Settlement Agreements and Compromise Agreements
For more information on this subject, please see our related articles:
- Grievances at work
- I want to quit my job. Can I get a payout?
- How do I request a settlement agreement?
- How do I get a compromise agreement?
- How do I get a settlement agreement?
- Settlement agreement solicitors near me
- What is a settlement agreement?
- I’ve been offered a settlement agreement. What do I do?
Need help?
To make a FREE enquiry based on any of the issues raised on this page call us on 0808 168 7288, or complete an Online Enquiry.
We have already helped thousands of people to win millions of pounds in compensation.
We will also discuss the best methods of funding your case and seek to reach a solution that best suits your needs. This can involve a “no-win, no-fee” agreement if appropriate.