A settlement agreement (previously known as a compromise agreement) is a contract that an employee and employer will sign to agree the termination of employment.

It is a process often used by employers when they wish to arrange with an employee to leave on mutually agreeable terms. In certain cases, a settlement agreement will resolve the terms of a work dispute that may have occurred over the period of when the employee was working for the employer.

When proposing a settlement agreement, your employer should tell you to take legal advice on the terms of the agreement. It is important to seek advice from an experienced employment lawyer.

Seeking advice on your settlement agreement offer?

You can contact us either by calling the relevant number below or simply complete our online contact form and one of our team will get back to you without delay.

Call us on:

Edinburgh - 0131 229 1212

Glasgow - 0141 221 6551

Our Employment Law team are experienced in advising employees at all levels, up to and including senior executives. We’ll take the time to answer any questions and will work hard to find the best outcome for you.

We can arrange an in-person meeting or a video call to discuss your specific situation and advise you whether you may have any claims, or if the settlement agreement being offered is reasonable.