Settlement Agreement Advice for Employers

Settlement agreements are an effective means of protecting your business from employment claims. From our offices in Bolton and Bury, Clough & Willis has helped hundreds of clients with the creation and completion of these legally binding documents, and we are best placed to offer advice during this process. 

To discuss your circumstances with a solicitor, contact us by calling 0800 083 0815, or fill in an online enquiry form and we will be in touch at a time that is convenient for you. 

What is a settlement agreement?

Formerly known as compromise agreements, settlement agreements are predominantly used by employers to protect themselves against claims from employees. In return for a specified sum of money, the employee agrees not to pursue any of their potential claims against you. 

Where settlement agreements are generic or not properly tailored to the parties and the circumstances, or the legal requirements haven’t been met, the courts will be happy to find that the agreement is not enforceable.

Our team of employment law solicitors will ensure that your settlement agreement meets all the legal requirements and protects you from all of your employee’s potential claims. 

Why do I need a solicitor?

Before you approach the employee in question, even informally, it is essential that you first seek specialist legal advice. The timing of and manner in which you approach an employee with a settlement proposal is crucial. 

For instance, discussions about a potential settlement can be “off the record”, but if an offer is made too quickly, or in the wrong manner, there is a risk of the whole conversation being referred to in later court proceedings. 

Not only can a well-drafted settlement agreement provide certainty and limit your risk with regard to employment claims, it can also be used to reinforce valuable obligations.  For example: 

• To prevent an employee who is leaving from poaching your clients
• To prevent an employee who is leaving from poaching your staff
• To ensure an employee keeps your trade secrets confidential

We prepare and negotiate settlement agreements for all sorts of scenarios, from small settlements for junior employees to complex high value cases involving the most senior employees and executives.