Protect your business from tribunal claims and reputational damage. We help you negotiate binding agreements that minimise risk and secure a clean break.
When an employment relationship breaks down, the uncertainty of unfair dismissal claims, harassment accusations, or potential tribunals can disrupt your operations. Whether you are managing a redundancy or a difficult dismissal, a settlement agreement can provide the certainty you need.
At Buckles Law, we guide employers through complex exit strategies. As expert settlement agreement solicitors, we ensure that your commercial interests are protected and that you can move forward without the threat of future litigation.
How we support your business
We understand that every employee exit is unique. Our team provides strategic advice tailored to your specific circumstances, helping you:
- Negotiate terms that protect your interests – We handle the tough discussions for you. We work to secure favourable terms that safeguard your confidential information, client relationships, and business reputation.
- Minimise legal and commercial risk – A poorly drafted agreement can leave you exposed. We draft robust employment settlement agreement documents that ensure full compliance and effectively waive the employee’s right to bring future claims against you.
- Approach sensitive conversations with confidence – Ending an employment relationship is rarely easy. We provide the legal backing and strategic coaching you need to handle sensitive conversations professionally, ensuring the process is respectful and compliant.
Expert legal advice for employers
Whether you are a small local business looking for settlement agreement solicitors or a corporation operating across the UK who need assistance with exit negotiations, our expert Employment team is ready to assist. Contact us today.
FAQs
What are exit negotiations?
Exit negotiations (including “Protected Conversations”) are discussions between an employer and an employee to agree on the terms of the employee’s departure. These are often used when the relationship has broken down or during restructuring. The goal is to reach a mutual agreement that avoids a formal dismissal process and potential legal disputes.
What is a settlement agreement?
A settlement agreement is a legally binding contract between an employer and an employee. It typically involves the employee agreeing to waive their right to bring claims (such as unfair dismissal) against the employer in an employment tribunal, usually in exchange for a financial payment.
What are the different types of settlement agreements?
While the core purpose remains the same, these agreements can be used in various scenarios, including voluntary redundancy, resolving a disciplinary dispute, ending a contract due to ill health, or settling a grievance regarding discrimination or harassment.
Who pays for the settlement agreement?
While not a strict legal requirement, it is standard practice for the employer to contribute towards the employee’s legal fees. This is because the employee must receive independent legal advice for the agreement to be valid. The contribution is normally a nominal amount ranging from £500 – £750 plus VAT which usually covers the cost of advising on the terms and effect of the agreement only.
What is the difference between a COT3 and a settlement agreement?
A COT3 is a settlement record used during ACAS conciliation (often when a claim has already been initiated or threatened). A COT3 may only be used where ACAS
There is no requirement for the employee to obtain independent advice before signing a COT3, however should they wish to do so there is no requirement for the employer to pay a contribution towards legal fees.
A settlement agreement is a private contract negotiated directly between the parties (with legal advisors) without the necessary involvement of ACAS. Both achieve the same goal of preventing future claims. As a settlement agreement must comply with various statutory requirements, this is more formal and does require the employee to take independent legal advice before they can sign the settlement agreement.
Can a settlement agreement be rescinded?
An offer of a settlement agreement can be withdrawn (rescinded) by the employer at any point before it is signed by both parties. Once signed, it becomes a binding contract and generally cannot be rescinded unless there is a breach of contract.
Why would an employee be asked to sign a settlement agreement in a redundancy situation?
Redundancy is a statutory process for dismissing employees when their roles are no longer needed. A settlement agreement is a contract often used during or after a redundancy process to offer enhanced redundancy pay in exchange for the employee agreeing not to challenge the dismissal or claim unfair selection. If you are only paying a redundant employee their statutory redundancy payment and contractual entitlements (e.g. notice and holiday pay) there is no requirement to sign a settlement agreement, however where an enhanced redundancy payment is being offered it is good practice to formalise this in a settlement agreement.
