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.

Start your employment settlement agreement process today
Contact us for a consultation and secure the right legal support.

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.

Why Choose MAR Legal for Employment Settlement Agreements?

Expertise in Employment Law

Our solicitors have extensive experience in employment law, handling settlement agreements for both employers and employees. We can help you navigate the complexities of these agreements, ensuring that all legal requirements are met and that your rights are protected.

Tailored Legal Advice

We understand that no two employment situations are the same. At MAR Legal, we provide personalised advice tailored to your specific circumstances, whether you are an employer seeking to terminate an employee’s contract amicably or an employee negotiating your exit terms.

Ensuring Fairness and Clarity

Our priority is to ensure fairness for all parties. We will make sure you fully understand the terms of your settlement agreement before you sign anything. For employees, this means clear guidance on your entitlements, including redundancy pay, holiday pay, and other benefits.

Confidentiality and Non-Disparagement

We understand the importance of confidentiality in settlement agreements. Our team ensures that any sensitive matters are handled with the utmost discretion, helping both employers and employees maintain a professional relationship even after the agreement is finalised.

Speed and Efficiency

We pride ourselves on providing fast and efficient service. Our solicitors will ensure that your settlement agreement is drafted promptly, allowing you to move forward without unnecessary delays.

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.

How Our Employment Settlement Agreement Process Works

1

Initial Consultation

The first step is an initial consultation where we discuss your situation and advise you on the options available. For employees, we explain the key points of the settlement agreement, and for employers, we guide you on best practices.

2

Drafting and Reviewing the Agreement

Our team drafts or reviews the settlement agreement, ensuring all terms are fair, legally sound, and clear. For employees, we ensure the offer is in your best interest. For employers, we ensure compliance and minimise risks.

3

Negotiation

If required, we will negotiate the terms of the settlement agreement on your behalf, ensuring the outcome is fair and reasonable. Employees can often secure a better financial settlement or improved terms with our expert advice.

4

Signing and Finalisaton

Once both parties agree on the terms, we will guide you through the signing process. For employees, we ensure that the agreement is explained clearly, and you are fully informed before signing. Once finalised, the settlement agreement is legally binding.

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.
Contact Us info@marlegal.co.uk

Employment Settlement Agreement Client Testimonials

MAR Legal made the process of negotiating my settlement agreement so much easier. They explained everything clearly and ensured I received a fair financial settlement. I couldn’t have asked for better legal support.
Jamal. M., Employee
As a business owner, it was crucial to ensure the settlement agreement was legally sound and in our best interests. MAR Legal helped us negotiate a fair agreement, and the process was quick and hassle-free.
John D., Employer

FAQs About Employment Settlement Agreements

Offered a settlement agreement by your employer? Here are the key things to know, explained by MAR Legal in simple terms.

It’s a legally binding document where you agree to waive certain rights (like making claims against your employer) in exchange for a settlement.

No. You can negotiate the terms or reject the offer. However, settlement agreements often offer tax-free payments and a clean break, so it’s worth getting legal advice.

No. It’s completely voluntary. You should never feel pressured and are entitled to seek advice before signing.

The law requires independent legal advice before the agreement becomes valid—so you fully understand what you’re giving up.

Yes. We often help employees negotiate better exit packages, references, or adjustments to restrictive covenants.

Usually, your employer will contribute towards your legal costs—and often this covers our fee in full.

Not directly. But some agreements include clauses about confidentiality or references, which we’ll help you review.

It depends. If you have a strong claim, we may advise negotiating for more or pursuing a tribunal. We’ll help you decide what’s best.

Yes. While most are offered when employment is ending, you can still request one after resigning, especially if there’s a dispute.

Usually the first £30,000 of a genuine compensation payment is tax-free, but other payments (like bonuses or PILON) may be taxable. We’ll explain what applies in your case.

In most cases, we offer same-day or next-day reviews, so you’re not left waiting.

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.

Contact Us info@marlegal.co.uk


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