Settlement Agreements
Settlement agreement solicitors in Cheltenham
At Pembridge Solicitors, we advise employees who have been offered a settlement agreement or are considering leaving employment on agreed terms. Based in Cheltenham, our employment solicitors provide clear, practical advice to help you understand what the agreement means, whether the terms are fair, and how it may affect your future. Settlement agreements are legally binding documents, and taking advice before signing is essential. Our role is to explain everything in plain English and ensure your interests are properly protected.
What is a settlement agreement?
A settlement agreement is a formal agreement between an employer and an employee that sets out the terms on which employment will end, or a dispute will be resolved. In return for agreed payments or benefits, the employee usually agrees not to bring legal claims against the employer. Because you are giving up important rights, the law requires you to receive independent legal advice before the agreement can be valid.
When settlement agreements are used
Settlement agreements are commonly used where an employer wants to end the employment relationship on agreed terms, avoid a dispute escalating, or resolve an existing workplace issue. They often arise in situations involving redundancy, performance concerns, workplace disputes, or potential claims such as discrimination or unfair dismissal. Being offered a settlement agreement does not necessarily mean you have done anything wrong.
Understanding what is included in a settlement agreement
Settlement agreements usually cover matters such as compensation, notice pay, holiday pay, tax treatment of payments, confidentiality, references, and post-employment restrictions. Some agreements also include provisions about returning company property, announcements to colleagues, and future contact. Understanding how these terms affect you now and in the future is an important part of the advice process.
How we handle settlement agreement advice
When you instruct Pembridge Solicitors, we review the settlement agreement in detail and explain each clause clearly. We assess whether the compensation offered is reasonable in light of your role, length of service, and potential claims. We also check that the agreement complies with legal requirements and advise on any risks or gaps. Where appropriate, we can negotiate improved terms on your behalf, such as increased compensation, better references, or changes to restrictive clauses. Our focus is on ensuring the agreement works for you, not just your employer.
Negotiating settlement agreement terms
Settlement agreement terms are often negotiable. Employers may be willing to improve financial terms or adjust wording to secure a clean and final resolution. Having legal support can make a significant difference to the outcome, particularly where there may be underlying legal claims. We advise on what can realistically be negotiated and how best to approach discussions.
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0330 900 0377
Clear, confidential advice on settlement agreements. Speak to an experienced solicitor to understand your options and next steps.
Settlement agreement FAQs
Do I have to accept a settlement agreement?
No. You are not required to accept a settlement agreement. You should only sign if you are satisfied with the terms and understand the consequences. Legal advice helps you make an informed decision.
Who pays for the legal advice?
In most cases, the employer contributes towards the cost of legal advice as part of the settlement agreement. This is usually stated in the agreement itself. We will explain how this works when reviewing your document.
How long do I have to consider a settlement agreement?
Employers are expected to give you a reasonable period to consider the agreement, often at least ten days. You should not feel pressured to sign immediately. Advice helps ensure you use this time properly.
Will a settlement agreement affect my future employment?
A properly drafted settlement agreement should not prevent you from finding new work. Issues such as references and restrictive covenants should be reviewed carefully to ensure they do not unfairly limit future opportunities.
Are settlement payments taxed?
Some payments under a settlement agreement may be tax-free up to a certain limit, while others are taxable. The tax treatment depends on the nature of each payment. We explain how this applies to your agreement.
Can a settlement agreement be challenged later?
Once signed, settlement agreements are difficult to challenge. This is why it is important to receive proper legal advice before signing, to ensure you are comfortable with the terms and consequences.
Where we also assist clients
While our settlement agreement solicitors are based in Cheltenham, we also advise clients from Tewkesbury, Gloucester, and across England and Wales, with support provided in person or remotely where appropriate.
Speak to settlement agreement solicitors in Cheltenham
If you have been offered a settlement agreement or are considering one, our solicitors are here to help. We provide clear, independent advice focused on protecting your interests and securing fair terms. To speak to one of our employment solicitors, call 0330 900 0377 or contact us online to arrange a consultation.
How to Find Us
Calderwood House
Montpellier Parade
Cheltenham
GL50 1UA
If you need directions or have any questions before visiting, feel free to call us.