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Settlement Agreements

Receiving a settlement agreement (formerly known as a compromise agreement) can be a daunting experience and one that may come as a complete surprise for many individuals. The BPE Employment Team are here to assist you in respect of all of the numerous ingredients within a settlement agreement and will always very carefully take your detailed instructions and then explain to you all of the options available to you.

In addition to that, we will assess the offer made and advise you in respect of the optimum way forward, in terms of any re-negotiation of the headline commercial terms and/or in respect of ensuring that the departing employee’s on-going rights are protected and/or not prejudiced, in any way. The employer will have protected their position in the Settlement Agreement. We see it as our fundamental obligation to protect our clients’ position.


How to Respond to a Settlement Agreement

On receipt of a proposed settlement agreement, you should immediately seek employment legal advice. It is common for your employer to contribute towards the legal costs of seeking legal advice and this is normally recorded within the agreement.

As part of our service, we will review not only the settlement agreement itself, but also the circumstances of the agreement and any relevant documents, such as your contract of employment.

In our vast experience, we find that there are often a number of issues that require attention in a settlement agreement, and it is very common for significant negotiations to take place before a final agreement is reached. What is more, in our experience, the first offer made by an employer in these circumstances is rarely the best offer. Who makes their best offer first?!

Depending upon the circumstances, the terms of any Settlement Agreement can generally be re-negotiated and in some cases, significantly so. The BPE Employment Team have vast experience in doing so for our clients. What is more, we have an enviable track record in this field.



When negotiating, we will seek to protect your current position in terms of all issues which might include, but are not limited to the following:

  • An agreed termination date;
  • Notice and holiday pay;
  • All contractual benefits;
  • Compensation for loss of employment;
  • Outstanding bonuses and/or commissions;
  • Existing shares and/or share options;
  • The on-going applicability of any post-termination restrictions; and
  • The terms of any reference.

BPE’s Employment Team has built an expertise in settlement agreements and have a comprehensive approach that we deploy when negotiating with employers and their advisers, on our clients’ behalf.

Our substantial experience also enables us to structure the termination package in order to provide the most attractive and efficient conclusion in terms of the tax payable (or indeed, not payable) by our client in connection with the compensation for loss of employment.

Nick Rowe of BPE is who you need in your corner, a tenacious prize fighter, he will represent you with passion and enthusiasm
Private Individual, Negotiating against employer


A Settlement Agreement is a legally binding contract between an employee and an employer. At its simplest, a Settlement Agreement is often used as a device to bring the employment relationship to an end, in return for a financial payment to an employee.

As part of the process, your employer will require you to “give up” many of your contractual and statutory rights, such as any claims for unfair dismissal and/or discrimination that you may have against that business or organisation.

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