Individual / Employment
You may be offered a Settlement Agreement by your employer and need to take legal advice at that point. Alternatively, you may wish to exit your job and need tactical advice to prompt your employer to offer you compensation under a Settlement Agreement.
Gorvins’ employment solicitors are experts in negotiating and advising on Settlement Agreements, ensuring that you receive the right amount of compensation.
A settlement agreement is a legally binding contract that prevents an employee from pursuing any claims against their employer, usually in return for a sum of money.
Employers usually insist on certain formalities when reaching a settlement. This usually means the employee will have to seek independent legal advice from a solicitor to ensure they understand the terms. A properly drafted and negotiated settlement agreement can be a very effective way to ensure that you are adequately compensated for the termination of your employment, without the need to bring an Employment Tribunal claim against your employer.
We will give tactical advice to negotiate the best compensation package for you. We will also advise and negotiate the terms of any Settlement Agreement, which may include negotiating terms such as the tax indemnity, restrictive covenants, the contribution to your legal fees and payment terms.
You may wish to exit your job and need tactical advice to prompt your employer to offer you compensation under a Settlement Agreement and we will advise on the best way to achieve this outcome.
With extensive experience in advising on Settlement Agreements, you can trust that you are in the best hands for achieving the desired outcome. Once we have all the relevant information from you, we can assess the best way forward for you and advise on how to best protect yourself.
To discuss your Settlement Agreement or to find out more information about how we can help, please contact our employment team today on 0161 930 5151 or send us an e-mail to employmentteam@gorvins.com.
Alternatively, you can contact us using our online form.
Yes, in almost all cases. It is standard practice for the employer to provide a legal fee contribution (typically between £350 and £1,000 + VAT) to cover the cost of you seeking independent advice. In many instances, this means our service is effectively free to you. If we need to negotiate a higher fee due to the complexity of the deal, we will handle that directly with your employer.
Generally, yes. Payments made as genuine compensation for “loss of office” can usually be paid without tax or National Insurance deductions up to the £30,000 threshold. However, payments for notice (PENP), holiday pay, and bonuses are still taxable. We will review the “Tax Indemnity” clause to ensure you aren’t left with an unexpected bill from HMRC.
If you don’t sign, the offer is usually withdrawn, and you remain an employee (or remain dismissed without the extra compensation). This might be the right move if your potential Unfair Dismissal or Discrimination claim is worth significantly more than the offer. We will give you a “best and worst case” valuation to help you decide.
Most agreements contain a confidentiality clause. However, we always ensure there is an “allowable disclosure” carve-out that lets you discuss the terms with your immediate family, legal/financial advisors, and HMRC. Without this, you could technically be in breach of contract for telling your spouse.
Unlike a standard reference (which usually only gives dates of employment), an agreed reference is a document we negotiate as part of the settlement. It ensures that any future employer receives a positive or neutral statement that has been pre-approved by you.
No. No matter what the contract says, you cannot “waive” your right to make a protected disclosure (whistleblowing) or report a crime to the police. Any clause that tries to stop this is legally unenforceable.
