Negotiating exits and settlement agreements


Sometimes relationships don’t work out. It’s true in life and it’s true in business. When managed correctly, settlement agreements (previously known as compromise agreements) allow employers and employees to part company on an agreed basis which is satisfactory to both parties; the employer obtains the certainty of knowing that they are not going to become embroiled in a costly court or tribunal claim at some point in future, and the employee usually receives some compensation or benefit that will assist them to move on.


We are experts in advising both companies and employees/directors on mutually agreed exits, giving a significant tactical advantage in often being able to anticipate the arguments that might come at us from the other side.


For employers
We can provide you with tactical support and guidance on instigating a protected conversation also known as an “off the record chat” with an employee with a view to achieving a desired outcome.  

If terms can be agreed, we will then assist you with drawing up a settlement agreement for the consideration of your employee. In order for the agreement to be legally binding, the employee will need to obtain advice upon the terms and effect of the agreement from their own solicitor. The established practice is for the employer to pay a contribution towards the employee’s legal costs in obtaining that advice. There is no prescribed contribution amount, but the current practice is for employers to contribute in the region of £300 to £500 plus VAT. 

For employees
If you are an employee or director looking to negotiate agreed terms of exit or if you have been offered a settlement agreement that you want explained to you in plain English by your own solicitor, we are happy to help.

Our experts will support you through the process to ensure that you fully understand your rights and, most importantly, if you are getting a good deal. If you are unhappy with the terms, we can provide you with tactical negotiation advice or negotiate on your behalf with your employer.


Complementary initial consultations with our specialist employment lawyers are provided with no obligation to proceed.


Please get in touch today by contacting Melanie Rowe on 01872 226990 (office), 07854 029922 (mobile) or


Click here to read our brief guide on settlement agreements.


Concerned about non-disclosure agreements and confidentiality clauses?
Click here for our myth busting article on NDAs.