Why People Hire Settlement Agreement Solicitors

You’ve probably come across the term “settlement agreement” before but don’t know what exactly it entails. Don’t worry because you’re not the only one. It’s quite reasonable not to have a clue about what a specific term means when you have no use for it. 

But, if you do happen to be in a position where you need to understand what a settlement agreement is, you’ve come to the right place. We’ll be more than happy to explain what it is and why hiring a solicitor is necessary for it. 

First of all, a settlement agreement or sometimes also known as compromise agreement, is an agreement done between an employee and their employer. But what kind of agreement is it? 

It’s an agreement where there’s a payment involved from the employer in return for their employee not to pursue any claims to court or Employment Tribunal.

Moreover, the Employment Tribunal is where an employee could take their employer to court if they had a claim or complaint against them. In most cases, since employers often fear complaints against them, the employer will try to settle the dispute before the court case even starts. Follow this link to discover more https://www.mondaq.com/uk/employee-rights-labour-relations/1244772/settlement-agreements-for-employers-a-complete-guide

Most of the time, an employer will want the terms of this agreement to be kept secret. This includes information about any payments and the reasons why the job ended.

So, if you’re an employee and you sign a settlement agreement, you then give up your right to file a complaint against your boss. This is usually where solicitors get involved to offer advice for you and to make sure you sign the document. 

Before you decide to take any action, you should definitely consult with a settlement agreement solicitor to ensure you’re making the right decision. Here are a couple of reasons why this is necessary: 

Get the best deal possible

An experienced professional such as a settlement agreement solicitor will try their hardest so you can get the best deal possible. You should also know that there are certain factors that need to be taken into account to determine the settlement. Those factors include your annual salary, the notice required by the employer and the circumstances surrounding the settlement.

For legality reasons 

Everyone knows that employees’ rights are protected by law, and they cannot be waived by contract. Before you sign anything, your lawyers will make sure you know exactly what you’re getting and to what you’re entitled. 

The law provides the employee with protection in this situation, and competent solicitors can provide guidance on whether the employee should negotiate a greater compensation or refuse to sign altogether. 

The employee may pursue legal action at a later time if all legal conditions are not completed, such as if the employee didn’t receive the advice they needed. You can check out this page

Avoiding unnecessary taxes

Once you’ve reached a deal with your employer, it’s important that you receive your settlement without paying taxes. The beauty of working with a solicitor is that they can re-draft the document to ensure you avoid paying unnecessary taxes. 

In this way, your employer won’t even have to pay extra money, and you’ll be able to receive the full amount without issues whatsoever. It’s important to talk to a solicitor about these things because you need to stick to the rules and not make a mistake along the way. If you feel like you can’t handle everything on your own, then look for professional advice from a solicitor. 

Since we’ve covered the benefits of hiring a solicitor for your settlement agreement, let’s focus on the benefits of why you might need one in the first place. 


For most employers, having a settlement agreement means that everything is kept secret. For example, if you’re an employer and you don’t want your employee to take you to court, you need to have a settlement agreement prepared. This means that whatever reasons discussed between you and your employee will be confidential so that no third party is aware of what’s going on in your business. 

This will keep you safe in terms of protecting your reputation. It’s important for both sides to have a very clear understanding of the rules about privacy.


When two people decide on a settlement agreement, it gives them a sense of certainty for both of them. Why is this so? Well, an employee has a sense of certainty because they have a legal contract that guarantees they’ll receive the financial award promised to them. So, if you want thing to be handled more privately without making a bigger mess of the situation, you can definitely hire a professional solicitor to handle your agreement. 

On the other hand, this also benefits employers because the matter will be resolved much quicker with a settlement agreement than taking things to court. It’s known that Employment Tribunals are sometimes time-consuming and unpredictable, so an agreement of this type can definitely speed things up. 

Another thing that both parties can take advantage of is the time they’ll save. Surely you don’t want to deal with bureaucracy and all that time-consuming process along the way. An option of hiring solicitors for settlement agreements is the one you should explore if you want the procedure to go as smoothly as possible. 

A few final words

There you have it! Understanding settlement agreements takes time and a lot of research, but you don’t have to do everything on your own! 

Any employment-related issue you might have with your boss, you can hire a solicitor to guide you through the entire process. The more you know, the more prepared you’ll be for what the process entails. Of course, there are so many options to choose from when it comes to solicitors, so be sure to make the right pick through enough research. 

Ask for recommendations and referrals from friends and family members as well. So, good luck with your settlement agreement!