posted 6th August 2025
Settlement Agreements – A Strategic Solution for Employers
Settlement agreements are a practical tool for resolving workplace disputes and ending employment relationships on agreed terms.
At Meridian Legal Services , we specialise in drafting, reviewing, and negotiating settlement agreements to protect your business and ensure compliance with UK employment law.
What Is a Settlement Agreement?
A settlement agreement is a legally binding contract where an employee agrees to waive certain employment rights, often in exchange for financial compensation. Common situations include:
- Redundancy exits
- Grievances or disputes
- Potential constructive dismissal claims
- Senior executive departures
Why Employers Use Settlement Agreements
- Prevent Tribunal Claims: Employees waive their right to bring future claims.
- Cost & Time Savings: Avoid lengthy, costly tribunal processes.
- Confidentiality: Protect sensitive company information.
- Clean Break: Provides closure for both employer and employee.
Employer Obligations
- Employees must receive independent legal advice (paid for by the employer).
- The agreement must meet specific statutory requirements to be valid.
- Employers must ensure terms are fair and adequately documented.
How Meridian Legal Services Supports Employers
- Drafting & Reviewing Agreements: Ensuring compliance and protecting your interests.
- Negotiation Support: Securing favourable terms while maintaining employee relations.
- Risk Assessment: Identifying potential legal exposure before signing.
- Post-Agreement Advice: Helping with reference wording and internal communications.
When to Consider a Settlement Agreement
Settlement agreements are valid when:
- Workforce reductions are planned.
- A dispute risks escalating into litigation.
You want a fast, clean resolution to an employment issue.
Contact Us Today
Our expert employment law team ensures your settlement agreements are transparent, compliant, and tailored to your business needs. Get in touch now for specialist settlement agreement support.
