Settlement Agreements (Compromise Agreements)

Legal Advice on Settlement Agreements (Compromise Agreements)

For swift, expert advice on Settlement Agreements, talk to Kervin & Barnes on 0203 178 5360 or email us through our secure contact form. We are based in Mayfair, London and, as well as other employment law matters, deal with Settlement Agreements on a daily basis.

Kervin & Barnes’ employment lawyers have a wealth of experience and expertise in dealing with Settlement Agreements (formerly known as Compromise Agreements).  Whilst the termination of employment is a difficult time, Settlement Agreements can offer a departing employee the opportunity to negotiate both a commercial settlement and agreement over other related issues such as restricted covenants, references, announcements, confidentiality and equity schemes within the Settlement Agreement. When negotiated effectively, a Settlement Agreement can be an efficient way to secure a generous settlement and move on without the need for Employment Tribunal (and/or High Court) proceedings. As a Settlement Agreement also offers finality to the employer, it is often possible to negotiate a provision for the full payment of legal fees.

Settlement Agreements are common in redundancy situations but also performance dismissals, disciplinary matters, misconduct dismissals, constructive dismissals or where Tribunal or High Court litigation is already proceeding.

What is a Settlement Agreement?

Settlement Agreements (formerly Compromise Agreements) are written agreements satisfying the provisions of s.203 of the Employment Rights Act 1996 and identical provisions in other relevant employment legislation.  They are an effective way for both employee and employer to ensure there is finality following settlement (further to exit negotiation and/or litigation) and that the employer will not face subsequent claims. In return an employee will often receive an enhanced, ex gratia payment and other beneficials terms. For more on the specifics of Settlement Agreements please see our Settlement Agreements Guide.

An individual is legally required to take independent legal advice in order for a Settlement Agreement to be valid. We can take you through that process with ease and are experts in doing so.

Advising Senior Employees, Directors & Partners in and around London

Kervin & Barnes’ lawyers have extensive experience in dealing with the full gamut of issues effecting senior employees in London. A Settlement Agreement (Compromise Agreement) will not simply be a matter of negotiating or agreeing a sum of compensation. Many employees will find that tax issues, restrictive covenants, deferred/vested equity considerations, regulatory matters and announcements are very important considerations that can have a significant effect on the attractiveness of any package. Our Settlement Agreement solicitors have a wealth of experience in dealing with all of these considerations and securing the best possible package for a client. This is one of the reasons why we are frequently referred by former clients.

As a result of their success, our team and our solicitors individually have received acclaim in the leading legal directories – Legal500 and Chambers & Partners – year on year.

Recent experience of our Settlement Agreement lawyers includes

Settlement Agreement legal advice is a staple part of the Firm’s work and our Settlement Agreement lawyers are instructed on both consensual terminations and more acrimonious departures. Our solicitors are experienced litigators and negotiators who have worked on the entire range of employment law issues – they will use this knowledge and experience to further your matter and secure you an appropriate exit package. Our recent work includes:

  • Acting as suggested adviser, over a number of years, to an international telecommunications company, a hedge fund, and investment companies.
  • Advising a senior Board member of a Financial Services company on a “redundancy” package including monetary payments and equity considerations in excess of £5,000,000.
  • Advising the Financial Director of a Hedge Fund on a settlement agreement that included share options, loans and equity worth in excess of £800,000.
  • Negotiating the exit package for a senior sales person to include two years’ gross pay and the payment of legal fees in full.

Talk to a specialist employment lawyer

If you would like to speak on a confidential basis to one of our Settlement Agreement solicitors about a potential or actual offer of a Settlement Agreement or Settlements in the context of litigation, please call us on 0203 178 5360 or email We are based in London W1. We act for companies as well as individuals and find that this insight is extremely useful for case strategy.