Settlement Agreements are compromise agreements which are legally binding between an employer and an employee in an organisation. Settlement agreements are often synonymous with Termination agreements, gagging clauses, mutually-agreed resignation, ex-gratia payments, golden goodbyes. They often entail the provision of a severance package by the employer in return for an employee’s agreement not to pursue any claims via litigation or at tribunal proceedings. In order words, they are contracts which stop employees bringing claims against their employers and offer settlement terms to cover such claims at the point of the termination of the employment. The employer will usually require you to keep the terms confidential, especially the surrounding circumstances of your contract’s termination. Either the employer or the employee can request or offer a settlement agreement

With an aim towards risk management and closure, settlement agreements can be said to be an efficient means by which the two parties may part company on agreed terms. The agreed terms are usually contingent on the conclusion that, in return for agreed payments, the employee will not be able to bring employment claims against the employer. It typically means that all claims and disputes are settled in a legally binding agreement in place of a court or employment tribunal.

You can call us on 0207 183 0084 or email us on for any queries about Settlement or Compromise Agreements . We are always happy to assist and can usually arrange appointments for Independent Legal Advice at short notice.