Settlement Agreement, Compromise Agreement | Employment Legal Advice Scotland
03332005926
(local rate, even from a mobile)

Settlement agreements

You may find yourself in a situation where you have been advised by your employer that they are “paying you off”. This can be a worrying time and not often much notice is given to you. Your employer might issue you with a Settlement Agreement and advise that you have a timescale in which to make a decision.

A Settlement Agreement, formerly known as a compromise agreement, is a contract between an employee and an employer where the employee agrees not to pursue an employment related claim or claims against the employer, usually in return for payment of compensation for the employee.

This normally involves the mutual termination of the employee’s employment.  The benefit of entering into a Settlement Agreement is that it offers a clean break between the employer and employee where the potential for a dispute exists.

Employee benefits of entering into a settlement agreement

Quicker process: A Settlement Agreement also avoids the length of time a case will take to reach the point of a decision being made and the expense of litigation.

Compensation guaranteed: Agreeing to give up the right to pursue an employment tribunal claim in turn for payment of agreed compensation takes away the risk of pursuing an employment tribunal or court case and being unsuccessful. This offers the certainty of receiving compensation within an agreed timescale.

Tax Free payment: An agreed lump sum for payment of compensation for loss of employment can be paid tax free up to £30,000.

Confidentiality: The facts and terms of a Settlement Agreement are normally kept confidential to the employee and employer other than for disclosure to professional advisers and the employee’s immediate family.

Reference: An employer will often agree to provide a reference to the departing employee to provide to prospective employers. This is a benefit to the employee as an Employment Tribunal has no power to order an employer to provide a reference.

Settlement Agreement Legal Advice

At Digby Brown, our employment solicitors can handle your concerns in a very tight timescale as they are more than familiar with providing relevant advice to employees in these types of situations.

You will require independent legal advice on the terms and effect of the settlement agreement. The employer will include payment or a contribution towards legal fees for receiving this advice as part of the terms of the Agreement. If terms require to be negotiated with the employer the fee would increase depending on the time involved.

Our solicitors can provide this advice in a straightforward and professional manner using the benefit of their experience.  We can respond quickly to clients who require this technical advice at short notice.  

Where an exit from a business is being considered, we can provide representation for you and negotiate your preferred terms on your behalf to deliver an agreement tailored to the specific circumstances.

Settlement Agreement Client Testimonial

“Digby Brown have been actively involved in providing advice and professional representation to employees in the Oil and Gas industry.  This has included negotiating exit terms and reaching agreement on contractual employment restrictions.”

“I would recommend Digby Brown for the following reasons. I was advised by both Ross Milvenan on Employment Law and also Digby Brown’s Injuries Department. I received clear and unambiguous advice on my circumstances and I was given clear options for proceeding on both Employment Law and Injuries compensation. Ross helped me negotiate my preferred solution with straight forward advice. I managed to get through a very difficult time with minimal confrontation."



based on 1399 reviews
previous
  • I would recommend Digby brown to anyone they will help you in every way they can 😊
    William - 19 Jan 2019
  • Absolutely tremendous service from start to finish.
    Amy was very professional and kept me updated every...
    Fraser Spud Stewart - 18 Jan 2019
  • First class.
    Janusz - 16 Jan 2019
  • The whole lasts a long time but they are very meticulous and professional.
    Peter - 16 Jan 2019
  • I have never done anything like this before but after meeting Amy she put me at ease .Amy did everything...
    Michael - 14 Jan 2019
  • Very Good indeed. Caseworker was always helpful. Process was long but thorough, and we got there in the...
    J Scott - 12 Jan 2019
  • Always hearing radio ads for digby brown? So when i was unfortunate to be involved in a road traffic...
    David Orr - 11 Jan 2019
  • Digby Brown were recommended to me and I have got to say I was not disappointed. Right from the start...
    Paul - 10 Jan 2019
  • I recently used Digby Brown solicitors in Edinburgh due to a car accident. I was allocated Beate Mcburnie...
    James - 10 Jan 2019
  • No hassle and minimum required, best company ,they do what they say would recomend to anyone ,thanks...
    Sairagh Adams - 10 Jan 2019
  • I had issues with my employer. I recieved a report from susan, and this woman has been my rock through...
    Kristina Thomson - 08 Jan 2019
  • I have had digby & brown work for me for over a year for a dodgy tattoo claim...
    Case got settled after...
    Elizabeth Brydon - 07 Jan 2019
  • Great service by Adelle, always kept my informed and offered great advice. More than happy with the service
    Tr1athlon - 18 Dec 2018
  • Great experience, hassle free and always kept in the know by Karen. Cannot fault the service.
    Ross Brown - 17 Dec 2018
  • I was so impressed by the care and professionalism of Digby Brown. Claudia Dealt with the claim and ...
    June Mclaren - 17 Dec 2018
  • Very happy with the service provided. I was given regular updates and support with any queries I had...
    Anna - 16 Dec 2018
  • Very professional in dealing with an employment issue for me.
    Fiona Pratt - 15 Dec 2018
  • excellent service if I need help again you will be my first and only choice.
    David - 14 Dec 2018
  • Digby Brown dealt with my daughters compensation claim from the school bus crash that she was involved...
    Tracy - 13 Dec 2018
  • Excellent service, not got a bad word to say about them. Hopefully don’t have another reason to use...
    Andrew - 13 Dec 2018
next