Settlement Agreements (Compromise Agreements)
A settlement agreement (compromise agreement) is the most common way of settling a dispute between employee and employer. A settlement agreement is a mutually accepted arrangement, usually following negotiation.
The Firm has a wealth of experience and expertise in dealing with settlement agreements. When negotiated well, a settlement agreement can be a very effective means of making sure an employee is sufficiently compensated for the termination of their employment. It is also an opportunity to deal with associated issues such as any regulatory approvals, references, share option / equity schemes, and post-termination restrictions.
Furthermore, as we regularly advise our corporate clients on settlement agreements, we are expertly equipped to anticipate the actions of employers. This is a valuable asset when negotiating terms.
Recent experience includes:
- Assisting a group of 17 architects and support staff on their settlement agreements following a collective redundancy process
- Advising a senior executive on a ‘redundancy package’ following a protected disclosure (whistleblowing) and subsequently negotiating compensation from £30,000 to £250,000
- Advising the Financial Director of a Hedge Fund on a settlement agreement that included share options, loans and equity worth (£800,000)
- Negotiating the exit package for a senior sales person to include two years full pay and the payment of legal fees in full
For an overview on the law relating to settlement agreements, please click here.
If you have a query related to settlement agreements and you would like to speak on a confidential basis,to one of our solicitors please call us on 0203 178 5361.