Employment Law for Employers
At Garratts Solicitors we specialise in drafting settlement agreements for employers. If you are looking to bring an employment relationship to an agreed and amicable end, a well-prepared settlement agreement is essential to protect your business and avoid future claims.
Our experienced employment solicitors provide clear, commercially focused advice to businesses of all sizes, making sure your agreements are legally compliant, robust and tailored to your needs.
We have offices in Oldham, Radcliffe, Worsley, Stalybridge and Newton Heath, where we provide expert, practical advice. We also offer remote appointments when needed.
Contact us on 0161 665 3502 for more details, or complete our online enquiry form and we will get in touch.
What is a settlement agreement?
A settlement agreement is a legally binding contract between an employer and an employee, typically used to bring the employment to an end on agreed terms.
A well-drafted agreement will:
- Provide certainty and finality for your business
- Reduce the risk of Employment Tribunal claims
- Clearly set out termination terms, payments and obligations
- Protect confidential information and business interests
Frequently asked questions
When should a business use a settlement agreement?
When you want to end an employment relationship on agreed, final terms: a negotiated exit, a redundancy you want to conclude cleanly, or a dispute you want to resolve without a tribunal. The agreement gives you certainty and closes off future claims.
What makes a settlement agreement legally binding?
Several conditions must be met, including that the employee has taken advice from an independent adviser on the terms and effect of the agreement. If those conditions are not met, the agreement will not prevent the employee from bringing claims.
Do we have to contribute to the employee's legal fees?
It is customary for the employer to contribute because the employee has to take independent advice for the agreement to work. A contribution also helps the process move quickly.
What should a well-drafted agreement include?
Clear termination terms and payments, the tax treatment of those payments, confidentiality, any restrictive covenants, return of company property, and an agreed reference where relevant. The right mix depends on the role and the level of risk.
Can we reuse one agreement for every employee?
We would not advise it. Terms that protect you in one exit can be unenforceable in another, and courts look closely at restrictive covenants. Each agreement should be tailored to the individual and the circumstances.
