At MAR Legal, we specialise in providing clear, comprehensive, and professional advice on Employment Settlement Agreements (formerly known as compromise agreements)

Whether you’re an employer looking to secure a smooth exit for an employee or an employee negotiating terms for a settlement, our team of expert solicitors offers personalised solutions to ensure the best outcome for all parties involved.

What is an Employment Settlement Agreement?

An Employment Settlement Agreement is a legally binding contract that formalises the terms of an employee’s departure from their employer. It is often used when an employment relationship is coming to an end by mutual consent, including cases of redundancy, resignation, or termination.

The agreement typically covers the employee’s compensation, terms of departure, confidentiality clauses, and any other post-employment obligations. It also provides protection to employers by ensuring that the employee waives the right to pursue legal claims in exchange for a negotiated settlement.

Our Employment Settlement Agreement Services

Whether you are an employer or an employee, MAR Legal offers a full suite of services to support you through the process:

For Employers

  • Drafting and Reviewing Settlement Agreements: We draft clear and legally sound agreements to protect your business interests and minimise potential disputes.
  • Negotiation Support: We provide expert assistance in negotiating settlement terms that are both fair and in line with UK employment law.
  • Redundancy and Termination: We guide you through the process of managing redundancies or dismissals and ensure compliance with all legal requirements.

For Employees

  • Understanding Your Settlement Agreement: We review your settlement offer and ensure you understand your rights and entitlements.
  • Negotiation of Terms: We help you negotiate a better financial settlement, including compensation and benefits, where applicable.
  • Legal Protection: We ensure that the terms of your agreement are fair and that your legal rights are protected.

Benefits of Employment Settlement Agreements with MAR Legal

  • Expert Advice: Get professional, knowledgeable advice tailored to your circumstances.
  • Fair and Balanced Terms: We ensure the settlement is in line with UK employment law, protecting both employers and employees.
  • Clear Understanding: We help you fully understand your rights, obligations, and the terms of the agreement.
  • Cost-Effective: Our services are affordable, and we offer clear, transparent pricing with no hidden fees.
  • Fast and Efficient: We work quickly to get your agreement drafted and signed, allowing you to move on with minimal stress.

Employment Settlement Agreement Client Testimonials

FAQs About Employment Settlement Agreements

A settlement agreement is a legal contract between an employer and an employee to resolve a dispute or end employment on agreed terms. Redundancy agreements are typically part of a settlement but focus specifically on compensation due to redundancy. We can help you understand the distinction.

Yes, once signed, a settlement agreement is legally binding. This means that both parties must adhere to the terms. For employees, you must receive independent legal advice for the agreement to be valid.


Yes, settlement agreements can be negotiated. If you feel the initial offer is not fair, we will work with you to negotiate better terms, such as increased compensation or better benefits.


No, you do not have to accept the offer. You have the right to seek legal advice and negotiate or even reject the offer if it does not meet your expectations.


The time taken to finalise a settlement agreement varies depending on the complexity of the case. Generally, the process can take between a few days to a couple of weeks, depending on negotiations and document drafting.

If you choose not to sign a settlement agreement, you may have the option to pursue a claim through an employment tribunal. However, it is often quicker and more cost-effective to reach a settlement agreement.

Get Expert Help with Your Employment Settlement Agreement


Whether you’re an employer looking to manage an employee’s departure or an employee negotiating your exit terms, MAR Legal is here to help. Our team of experts will ensure that your employment settlement agreement is fair, legally sound, and in your best interests.

Use the form below to request a meeting with the team.


Request a Call Back – Fill out the form below, and one of our debt recovery experts will contact you promptly.