Have you been given a settlement agreement at work?
Settlement agreements are intended to settle disputes between an employer and an employee and swiftly and amicably end the employee’s employment contract. If you have been given a settlement agreement, it is only effective once you have received advice from a relevant independent advisor. It is important to ensure that what you are being offered is fair and we can advise you on this.
A settlement agreement must comply with minimum legal requirements. If it does not, an employee may still be able to pursue a claim against their employer.
Your employer will be expected to contribute a minimum of £300 plus VAT towards your costs. The amount the employer is prepared to pay will be set out in the settlement agreement. It is usually possible to conclude this without any further cost to you.
How does a settlement agreement work?
Previously known as a Compromise Agreement, a settlement agreement offers an employee a financial payment (salary, notice pay, compensation payment, for example) in exchange for agreeing that they will not pursue any legal claims against the employer. It is usual for an agreed reference to be inserted into the agreement.
You will normally be expected to waive your rights to all potential future claims, whether you are aware of them or not. There are, however, some exceptions to this, particularly in relation to accrued pension rights and personal injury claims.
Compensation amounts of up to £30,000 are tax-free (amounts payable above that and those under your terms of employment, such as notice or bonus payments, are normally taxed in the normal way, but there are exceptions). Payment of your settlement sum will usually occur 2-4 weeks after the agreement has been signed or your employment termination date (whichever is later).
A settlement agreement typically includes:
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Termination of employment
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Termination payment
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Employee warranties
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Settlement of claims
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Tax indemnity
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Confidentiality obligations
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Agreed reference
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Post termination restrictions
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Payment of legal costs
The Settlement Agreement Process
- When you have a draft settlement agreement you should contact us to make an appointment.
- We will arrange an in-person or online meeting and will ask you to send us a copy of your draft settlement agreement in advance.
- During the meeting the solicitor will ask about your employment history and advise you of any potential claims you have.
- They will run through the settlement agreement to explain any confusing clauses and advise you of any that should be altered or removed.
- They will advise you whether the amount being paid by your employer is reasonable and you can decide whether you wish to accept the financial package offered.
- If you decide not to accept the package offered, we will advise you of your options. These include instructing us to negotiate a higher sum on your behalf.
- Once you are happy with the financial package and the wording of the agreement, you will sign it.
- The solicitor will then sign an Adviser’s Certificate confirming you were advised of the terms and effect of the agreement.
- We will then send the adviser’s certificate and the executed agreement to your employer for them to sign.
- Your employer will sign and return the agreement and the matter is then closed.
How ELS Solicitors can help
Our team of dedicated employment law solicitors can help and advise you on your rights and whether your settlement agreement is fair. We can help you with negotiations, if necessary, execute the agreement, and provide you with the adviser’s certificate.
Your employer will be expected to contribute a minimum of £300 plus VAT towards your costs and it is usually possible to conclude this without any further cost to you. This would normally cover your initial consultation and providing the adviser’s certificate. We will advise you if your circumstances are likely to make this process more costly.
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I got an appointment within a few days of making my initial enquiry. On visting the ELS office the staff members were warm and welcoming. My issue was dealth with promptly… read more and professionally; I recieved very good legal advise and concluded my legal issue within a week.
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March 11, 2026Very helpful and professional service received.
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February 15, 2026An excellent service. Super quick turnaround without cutting corners. If I ever need an employment law specialist solicitor again I will contact Vital Ruwala first no hesitation. Thank you!!!
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February 6, 2026Helped me incredibly quickly and were very thorough, guiding me through various options and helping me make sense of my situation. Highly recommended.
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December 17, 2025 -
ELS offer a no fuss but detailed service, i have used them before and had no concerns about using them again.
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September 11, 2025Professional service kept me up to date all the way through. Would recommend
Michaela Drew
September 7, 2025 -
From my very first consultation, my redundancy was met with empathy and reassurance. Vital explained everything clearly, and always made time to answer my questions. Any emails were dealt with… read more very swiftly and no question was a bother. A solicitor and team I would recommend.
A Curtis
August 28, 2025I’m really pleased with the service I received from ELS Employment Solicitors and especially from Vital, who supported me throughout my case. He was always responsive, knowledgeable, and transparent at every… read more stage of the process. I felt well-informed and supported the whole way through. The outcome was beyond my expectations, and Vital did an excellent job securing a very positive result. I’m very happy with how everything was handled and would definitely recommend Vital and the firm.
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July 25, 2025Vital has been great dealing with my case. He has been very thorough and super responsive to a very time sensitive matter which ended to a successful conclusion. I would… read more definitely recommend his services!
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July 1, 2025I had a brilliant experience with ELS Employment Solicitors. As someone unfamiliar with legal processes, I found Vital incredibly transparent and fair when it came to fees, which made a… read more big difference during a stressful time. He explained everything clearly, was highly responsive, and showed genuine care and intelligence throughout. I’m really grateful for his guidance and support. Thank you.
Syed Ansar
June 25, 2025 -
Found ELS on goggle as wanted a local solicitor for a voluntary redundancy case. ELS was fantastic! They acted promptly, professionally and with efficiency. No delaying and I did not… read more have to chase for anything, once! I was so happy with the service I received. Thank you ELS
The Kings
June 19, 2025Vital was patient and personable. Settlement turned around super quickly and efficiently and was inline with my requirements.
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June 12, 2025I had the pleasure of working with Mr. Vital Ruwala on a sensitive and complex employment matter, and I cannot recommend him highly enough. From start to finish, he was… read more thorough, efficient, and incredibly hard-working. He communicated clearly and promptly, always keeping me informed while ensuring the process moved forward smoothly. What stood out most was how mindful he was about managing legal costs—he kept a close eye on expenses and always advised with transparency and fairness. I particularly appreciated his realistic and honest approach to outcomes, which helped me stay grounded and focused throughout. Thanks to his expert guidance, the matter reached a very successful conclusion. I am truly grateful for his support and professionalism, and would not hesitate to recommend him to anyone seeking excellent legal representation. —Simona
simona kucsova
April 11, 2025Contacted ELS Solicitors for help reviewing my settlement agreement, Vital insisted on meeting in person which was really helpful in going through my case throughly and planning next steps. With… read more Vital’s aid, I was able to almost double my tax free settlement! Really took the pressure out of a stressful period. Fully pleased with the result.
Andriana Soteris
December 12, 2024 -
I used ELS recently and I would highly recommend this company. Vital was extremely helpful and efficient. He had a matter resolved swiftly, gaining the best possible outcome for myself.
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October 21, 2024I had a brilliant experience having Vital from ELS represent me in a tricky employment situation recently. He was calm, knowledgable, incredibly helpful and navigated me through the process and… read more to a successful and extremely satisfactory outcome. Huge thanks to Vital, I would absolutely recommend him to anyone.
Courtney
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Bianca Silvia Campean
October 1, 2024 -
Wonderful service provided. Straight talking and great guidance and advice.
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Thomas Bensted
March 12, 2024 -
I’ve had the pleasure of working with Vital twice now over the last few years, and has always given astute, knowledgeable advice in a hassle free manner, ensuring things are… read more done efficiently. Hope I don’t have to use his services again, but if I do, I’ll be heading back to ELS Employment Solicitors.
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February 6, 2024 -
Exceptional Legal Support – A Solicitor Worth Trusting I recently had the pleasure of working with Vital Ruwala from ELS Solicitors Ltd and I am compelled to share my positive experience.… read more From the initial consultation to the resolution of my legal matter, Vital Ruwala demonstrated unparalleled professionalism, expertise, and a genuine commitment to my case. One of the standout qualities of Vital Ruwala was their ability to clearly communicate complex legal concepts in a way that was easy for me to understand. They patiently took the time to answer all of my questions, alleviating any concerns I had throughout the process. This level of transparency and accessibility made me feel confident and well-informed at every stage. Moreover, Vital Ruwala exhibited an impressive depth of knowledge in their field. It was evident that they had a comprehensive understanding of the legal intricacies related to my case. This expertise was instrumental in achieving a favorable outcome, and I am grateful for the meticulous attention to detail that Vital Ruwala consistently demonstrated. In addition to their legal acumen, Vital Ruwala displayed exceptional professionalism and dedication. They were consistently responsive, keeping me informed about the progress of my case and promptly addressing any new developments. This proactive communication style helped build trust and ensured that I felt supported throughout the legal process. The commitment to excellence exhibited by Vital Ruwala extended beyond their legal expertise. Their empathy and understanding of the emotional aspects of my situation were truly commendable. It was evident that Vital Ruwala genuinely cared about my well-being and sought to minimize the stress associated with legal proceedings. In conclusion, I highly recommend Vital Ruwala to anyone in need of legal representation. Their combination of legal proficiency, excellent communication skills, and compassionate approach sets them apart as a solicitor who goes above and beyond for their clients. I am immensely grateful for the positive experience I had working with Vital Ruwala and would not hesitate to seek their assistance in the future.
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February 6, 2024Exceptional Legal Support – A Solicitor Worth Trusting I recently had the pleasure of working with Vital Ruwala from ELS Solicitors Ltd and I am compelled to share my positive experience.… read more From the initial consultation to the resolution of my legal matter, Vital Ruwala demonstrated unparalleled professionalism, expertise, and a genuine commitment to my case. One of the standout qualities of Vital Ruwala was their ability to clearly communicate complex legal concepts in a way that was easy for me to understand. They patiently took the time to answer all of my questions, alleviating any concerns I had throughout the process. This level of transparency and accessibility made me feel confident and well-informed at every stage. Moreover, Vital Ruwala exhibited an impressive depth of knowledge in their field. It was evident that they had a comprehensive understanding of the legal intricacies related to my case. This expertise was instrumental in achieving a favorable outcome, and I am grateful for the meticulous attention to detail that Vital Ruwala consistently demonstrated. In addition to their legal acumen, Vital Ruwala displayed exceptional professionalism and dedication. They were consistently responsive, keeping me informed about the progress of my case and promptly addressing any new developments. This proactive communication style helped build trust and ensured that I felt supported throughout the legal process. The commitment to excellence exhibited by Vital Ruwala extended beyond their legal expertise. Their empathy and understanding of the emotional aspects of my situation were truly commendable. It was evident that Vital Ruwala genuinely cared about my well-being and sought to minimize the stress associated with legal proceedings. In conclusion, I highly recommend Vital Ruwala to anyone in need of legal representation. Their combination of legal proficiency, excellent communication skills, and compassionate approach sets them apart as a solicitor who goes above and beyond for their clients. I am immensely grateful for the positive experience I had working with Vital Ruwala and would not hesitate to seek their assistance in the future.
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January 12, 2024Vital, I want to thank you for all of your efforts on my case… I am so glad that I came to you and you negotiated the desired outcome.. Thanks… read more for all of your help! Lauren
Lee Hanson
December 19, 2023 -
Vital, I want to thank you for all of your efforts on my case… I am so glad that I came to you and you negotiated the desired outcome.. Thanks… read more for all of your help! Lauren
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December 19, 2023Great service, would highly recommend!
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November 4, 2023Highly professional team who looked after my best interests at a time when unexpected change was forced upon me. No ‘legal technical jargon’, just sound advice at a good price.… read more I’d also like to call out Dipa and Vital for their joint efforts – nothing was too much trouble. Highly recommended.
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October 25, 2023Highly professional team who looked after my best interests at a time when unexpected change was forced upon me. No ‘legal technical jargon’, just sound advice at a good price.… read more I’d also like to call out Dipa and Vital for their joint efforts – nothing was too much trouble. Highly recommended.
Michael Crader
October 25, 2023 -
We had a misunderstanding but ultimately it was resolved.
Luke Latham
May 5, 2023I went to Vital Ruwala at ELS Employment Solicitors last year with my difficult case which recently concluded with a positive outcome and he has been nothing short of amazing.… read more There have been many times when I wanted to give up and walk away due to the stress it had caused me but Vital helped me through it with his support and professional advice. His knowledge and expertise in dealing with cases like this brought me ease. He was always informative and keeping me up to date. I genuinely cannot recommend Vital enough as in my opinion, he is one of the best Employment Lawyers out there. Thank you for everything Vital.
R Rahman
April 20, 2023I went to Vital Ruwala at ELS Employment Solicitors last year with my difficult case which recently concluded with a positive outcome and he has been nothing short of amazing.… read more There have been many times when I wanted to give up and walk away due to the stress it had caused me but Vital helped me through it with his support and professional advice. His knowledge and expertise in dealing with cases like this brought me ease. He was always informative and keeping me up to date. I genuinely cannot recommend Vital enough as in my opinion, he is one of the best Employment Lawyers out there. Thank you for everything Vital.
R Rahman
April 20, 2023Vital was very professional and knowledgeable in the legal aspects of my settlement agreement. He helped with negotiations and achieved a good outcome which I probably wouldn’t have achieved with… read more a different solicitor. Would highly recommend his services in employment legal matters.
T Claire
March 20, 2023
