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Settlement and Compromise Agreements

Sometimes employers offer employees settlement agreements to bring their contract of employment to an end.

The advantage of a settlement agreement is that it can insulate the employer from any claims from the employee except for latent personal injury claims and accrued pension rights. This is particularly important because generally employers cannot recover their legal costs of a tribunal claim even if the claim fails.

The advantage for the employee is that they should get more than their strict contractual and/or statutory rights. However, the employee may get less than the sum they may be entitled to after bringing a successful claim. Nevertheless the employee will avoid the stress, risk and legal expense of bringing a claim and will be able to move on swiftly.

Helix is able to draft settlement agreements for its employer clients. We also act for employees and ensure they get the best possible deal. There are clear commercial advantages for both parties in a well balanced settlement agreement.



It is import for employers to realise that the settlement agreement will not protect them unless the employee gets the advice of an independent legal adviser before signing the agreements


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Contact Helix Law on 01273 761 990 or email: [email protected]