Employment Settlement Agreement

Employees have to seek independent legal advice before signing a settlement agreement with their employer.

Settlement Agreement

An employment settlement agreement is a binding written agreement between an employee and employer to settle a potential employment tribunal claim.

Employees have to seek independent legal advice before signing a settlement agreement.

Normally, any type of agreement that attempts to prevent somebody starting or continuing with employment tribunal proceedings is void, under Section 203 of The Employment Rights Act 1996.

However, the law allows an employer and employee to reach a binding written agreement that only applies if specified conditions are met.

Agreed Terms

An employer who wants to agree terms for someone to leave their employment obviously does not want that employee to leave and bring a claim in an employment tribunal, alleging they have been unfairly dismissed, or a victim of discrimination.

For that reason many employers want to negotiate enhanced terms for redundancies and retirements, or in other circumstances where there is a potential for the employee to later bring an employment tribunal claim.

In practice, it is common for employers and employees to enter into a settlement agreement where the employer pays the employee a sum of compensation, and the employee gives up their right to bring a tribunal claim.

Negotiations Before Dismissal Or Settlement

The law allows some discussions between employers and employees to be conducted in a without prejudice way that cannot be referred to in any subsequent tribunal proceedings.

If you have been offered an employment settlement agreement by your employer it is a legal requirement that you seek independent legal advice before signing it.

It is important to get the right legal advice, because once you sign the settlement agreement you will not be able to make a claim against your employer at an employment tribunal.

Normally your employer will agree to pay for you to receive independent legal advice.


Unfair Dismissal

Wrongful Dismissal

Constructive Dismissal

Employment Tribunals


Bishopsgate Law

Employees who are offered an employment settlement agreement by their employer must seek independent legal advice from a lawyer before they sign the agreement and this is usually paid for by their employer.

Employment lawyers at Bishopsgate Law solicitors can give employees independent legal advice about an employment settlement agreement before they sign it.  Their lawyers can usually carry out the process remotely so that you do not have to visit their offices.

There is more information about how Bishopsgate Law can help with independent legal advice about your employment settlement agreement on their website:

Settlement Agreements

Employment Law Solicitors

About Bishopsgate Law


Last Updated on December 15, 2020 by Admin