Settlement agreements: A manager’s guide


Where an employee has issued employment law related claims against an organisation, or may have any such potential claims, the employer will often wish to offer to settle any such claims (or potential claims), rather than defend what will often be costly and time-consuming employment tribunal proceedings. It will do so by making a compensation payment to the individual, in return for a legally binding waiver of any such claims. This is often done by means of a ‘settlement agreement’.

In order for such a settlement agreement to be legally binding, it has to comply with stringent statutory requirements.

Learning outcomes:

On completion of this course, you will have a greater understanding of:

The basic legal and practical issues surrounding ‘settlement agreements’, from a manager’s perspective. We will be looking at:

  • What is a ‘settlement agreement’?
  • Legally binding ways of settling employment disputes (which employment related claims can be settled under which type of agreement)
  • The legal principles surrounding ‘settlement agreements’:
    • Statutory requirements of a valid and binding settlement agreement
    • Statutory claims which can be settled under a settlement agreement
    • Statutory claims which cannot be settled under a settlement agreement
    • Some common issues such as personal injury claims, claims for accrued pension rights and future (potential) claims
    • ‘Without Prejudice’ and ‘Subject to contract’ and the rules on admissibility of  pre-termination negotiations
    • The ACAS Code of Practice on Settlement Agreements and ACAS Guide 
    • Enforcement
  • How to start negotiations
    • Negotiating terms of the settlement agreement 
    • Pre-negotiation considerations
    • Key standard clauses
    • Tax considerations – the basics

Authored By Nicola Howe

Nicola has practised employment law with large commercial firms for nearly 20 years. She regularly writes and presents courses on a wide variety of employment law topics. She is a member of the Law Society and the Employment Lawyers Association.

Price: £30.00 (excludes VAT)