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Redundancy and Settlement Agreements

Helping you to exit from your employer and resolve disputes amicably on terms that are beneficial to you

Settlement agreements (previously known as compromise agreements) are widely used by employers as a way of managing redundancy and/or settling any employee claims that they may have against their business, and to reach an agreement about the termination of the employee’s employment.

Entering into a settlement agreement is often an attractive proposition for both the employer and employee as it provides a clean break. It is a process that can be conducted relatively quickly and cheaply compared to lengthy redundancy consultations, Employment Tribunals or other legal remedies.

Therefore, for some employees, making a settlement agreement with your employer may be the preferred option for you as there is a lot less stress involved, no animosity, and allows both parties to move on quicker.

You or your employer are able to suggest a settlement agreement. However, whatever the circumstances that bring about a settlement agreement discussion, it is important that you, as the employee, seek independent legal advice from an experienced, employment lawyer.

Get in touch with our claims solicitor

Call us on freephone 0800 434 6544 or 01606 87 22 00.

Email us at


Why is legal advice important?

It is important that the deal you get is fair, right for you, and protects your employment future.

It is particularly important that you understand that in making such an agreement, you will give up your right to bring any claims against your employer e.g. a personal injury claim for an accident at work (there are, however, some exceptions such as industrial disease claims which may not establish until later in life).

Settlement agreements are also not legally effective unless you have received independent legal advice. The good news is that your employer will cover your legal fees for advice on the terms of the settlement agreement.

Typically, a settlement agreement will document clauses that confirm:

  • The claim to be settled,
  • The payments you will receive,
  • Relevant tax issues,
  • Confidentiality and/or gagging clauses, and;
  • Any agreed reference from your employer.

If your employer has asked you to sign a settlement agreement, talk to our experienced employment solicitors. They will be able to advise you on your rights and help establish whether or not the proposed settlement agreement is in your best interests.

Get in touch with our employment claims solicitor

Call us on freephone 0800 434 6544 or 01606 87 22 00.

Email us at


Why choose us?

Personal Injury Specialists

We are specialists in personal injury law with a proven track record in securing compensation.

No Win, No Fee

We offer a no-win no-fee claims service to ease the financial pressure on you.

Free Initial Consultation

You can arrange a free no-obligation case review to help you decide if we’re the injury lawyers for you.

Accredited Firm

We are accredited by the Association of Personal Injury Lawyers (APIL), demonstrating our experience specialist expertise in personal injury law.

Personal Service

We will support you throughout the claims process, providing a personal, friendly and compassionate service, with local home and hospital visits if required.

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Stonehewer Moss Solicitors, Citadel House, Solvay Road, Northwich, Cheshire, CW8 4DP

Stonehewer Moss Solicitors is a trading style of the Stonehewer Moss Limited, Registered in England No. 542 6583

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