What are the benefits of a Settlement Agreement for both parties?

October 14, 2021

In most cases the benefit of a settlement agreement for you is the payment of an enhanced sum of money to help you to move on from your role – a financial cushion from which you can look for a new job. 

A settlement usually signifies a clean break, and will often be preferable to the alternative of pursuing lengthy and potentially costly and uncertain employment tribunal proceedings.

You might be worried about your reputation or how your departure will be communicated to colleagues. 

A settlement agreement can include beneficial terms to like an agreed reference or announcement to put your mind at rest.

The key benefit for an employer is certainty, and the knowledge that you won’t be able to pursue a dispute through the courts or tribunals. 

An employer can also obtain the benefit of provisions around confidentiality, and reputation of the business (via clauses that the parties must not make derogatory comments about one another), certainty over return of company property, and restrictive covenants.

Julian Taylor
Julian Taylor is a qualified solicitor and the founder of JulianTaylorHR, a boutique employment law solicitors firm based in Oxford. Specialising in employment law, Julian has helped countless employees and employers throughout their settlement agreement process.
Julian Taylor

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This website contains a summary of various aspects of employment law. It is not intended to provide legal advice for specific cases. No liability is accepted for reliance on any of the information on this website. If advice is required please contact the firm. Settlement Agreements UK is the trading name of Julian Taylor Solicitors Limited, a company registered in England and Wales with registration number 7171586. Julian Taylor Solicitors Limited is recognised and regulated by the Solicitors Regulation Authority and all of its directors and members are solicitors of England and Wales.

Julian Taylor Solicitors Limited is recognised and regulated by the Solicitors Regulation Authority with registered number 533592 www.sra.org.uk
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