Return to view all news articles.

Settlement Agreements – a Complete Guide (Part 1)

A photo of Noel McNicholas
1st February 2023

In this 12-part series, we’ll break down the component parts of what a settlement agreement is, how it is structured and how it is put into effect. We will explore - in bite-sized instalments - how a settlement agreement works and whether it is right for the employee and employer.

Settlement agreements are commonly used in employment matters to resolve disputes and bring an end to employment relationships on mutually agreed terms. They are useful in a variety of situations, including:

• Termination of employment: Settlement agreements can be used to resolve disputes related to the termination of employment, such as disputes over severance pay, notice periods, and other termination-related issues.

• Discrimination and harassment: Settlement agreements can be used to resolve disputes related to discrimination and harassment in the workplace.

• Performance issues: Settlement agreements can be used to resolve disputes related to an employee's performance, such as disputes over disciplinary actions or performance evaluations.

• Avoiding litigation: Settlement agreements can be used to avoid the time and expense of going to court.

• Maintaining confidentiality: Settlement agreements often include confidentiality clauses, which means that the terms of the agreement and the reason for the settlement are kept confidential.

• Mutual release: Settlement agreements typically include a release, which means that both the employee and the employer give up the right to take any legal action against each other in relation to the matters that are resolved by the agreement.

Overall, settlement agreements provide a way to resolve disputes quickly and efficiently, with minimal disruption to the business and with less cost and uncertainty than going to court.

If you have any questions concerning a settlement agreement, please contact Noel McNicholas on 01926 887700 or If you would like to sign up to receive the series by email please click here.