0330 133 0730

Settlement Agreement Harrogate

Settlement Agreement Solicitors Harrogate.

Harrogate Office : 01423 209 103

Are you looking for a Harrogate based Solicitor to sign your Settlement Agreement?


We’re here for you. Our Harrogate based Settlement Agreement Solicitors provide clear, professional legal advice from our Harrogate office, available remotely via telephone or video call, or in person at a time that suits you.

We will review your Settlement Agreement, explain your rights and, if necessary, negotiate a better deal on your behalf.

In most cases, your legal fees are covered by your employer – meaning you pay nothing for your Settlement Agreement signing.

Contact us today using one of the buttons above. Let us handle the legal side, while you focus on what’s next.
Young woman standing in a meeting, looking pleased and excited, symbolising a successful settlement agreement outcome.

Frequently Asked Questions.

A Settlement Agreement (formerly known as a Compromise Agreement) is a legally binding contract between you and your employer that outlines agreed terms for ending your employment relationship or resolving a workplace dispute. It can also be referred to as a Termination Agreement.

Whether Settlement Agreement, Compromise Agreement or Termination Agreement is used, by signing this agreement, you’re waiving your right to bring future legal claims, such as unfair dismissal, discrimination, breach of contract, or redundancy disputes, against your employer, and terminating your employment, in exchange for a financial settlement and/or other benefits.

Employers often use Settlement Agreements to avoid either following fair processes internally, which may cost them time and money, or to avoid lengthy and costly employment tribunals in the event you was to make a claim against them.

Unlike a standard redundancy package or dismissal process, a Settlement Agreement provides certainty for both parties.

In conclusion, you receive financial compensation while avoiding potential career damage, and your employer mitigates the risk of costly litigation. Each agreement is customised to the situation at hand, making legal advice essential before signing.

Yes, you do have the legal right to refuse a Settlement Agreement if you are unhappy with the terms or feel that the compensation offered does not reflect the value of any potential claim. Accepting a Settlement Agreement is entirely voluntary, and you should not feel pressured into signing by anyone.

If an agreement is refused, you retain your right to bring a claim against your employer in the future, such as for unfair dismissal, discrimination, or breach of contract. In some cases, refusing the initial offer can also lead to a better-negotiated settlement, as your employer may be willing to increase the payout or adjust restrictive terms.

By choosing not to sign the Settlement Agreement, your employment status resumes and you may be permitted to continue working for your employer.

Please note, however, that rejecting a Settlement Agreement may mean that the employment relationship ends without compensation, and pursuing legal action could be costly and time-consuming. Seeking expert legal advice before deciding to sign / not sign ensures your are able to make an informed decision and negotiate the best possible terms for you and your family.

Yes, legal advice is a legal requirement for a Settlement Agreement to be valid. UK employment law states that you must receive independent legal advice before signing, ensuring you fully understand the terms, financial compensation, and any waivers of legal rights. Without this advice, the agreement is not legally binding, and your employer cannot enforce it.

Most employers cover the cost of legal advice by offering a contribution towards legal fees as part of the agreement. If this contribution is lower than our fee, we contact your employer on your behalf to request an increase, which in 9 out of 10 cases, they agree to cover the full cost.

This ensures you receive our expert legal advice at no personal expense to you while securing the best possible settlement terms.

Seeking expert legal advice helps you negotiate higher compensation, clarify restrictive clauses, and ensure a fair outcome before signing.

In most cases, your employer covers the legal fees for you to receive independent legal advice from us on a Settlement Agreement, meaning you will owe nothing.

Employers typically offer a contribution towards legal costs as, firstly, they are the ones asking you to sign the agreement, and secondly, to ensure you receive independent legal advice which makes the agreement is legally binding.  

If your employer’s contribution is lower than our fee, we are happy to contact your employer on your behalf to ask them to increase their contribution. In 9 out of 10 cases, they agree to cover the full cost. This ensures that you receive expert legal advice from us at no personal expense.

Furthermore, we will send our invoice for our fees direct to your employer to pay, so there’s no ‘out of pocket’ expense for you.

The amount you can expect to receive in a Settlement Agreement varies depending on several factors, including length of service, salary, reasons for termination, and the strength of any potential legal claims. While there is no fixed formula, typical settlement payouts include:

  • Unfair Dismissal Claims – Employees with a strong case for unfair dismissal may negotiate a settlement equivalent to 3 to 6 months’ gross salary.
  • Redundancy Settlements – If redundancy is the reason for termination, settlements often exceed statutory redundancy pay, particularly where enhanced redundancy terms apply.
  • Discrimination or Whistleblowing Claims – Employees with potential discrimination or whistleblowing cases may be entitled to higher compensation, as these claims have no statutory cap in an employment tribunal.
  • Compensation for Loss of Employment – Employers may offer an ex gratia payment, often tax-free up to £30,000, as an incentive to avoid tribunal claims.

The final settlement amount is negotiable, and you should seek expert legal advice to ensure you receive the best possible financial package specific to your situation.

We negotiate Settlement Agreements daily, our team know what is fair and reasonable and are ready to assess your offer and, if necessary, negotiate on your behalf.

A Settlement Agreement or Termination Agreement typically includes a range of financial payments, depending on the circumstances of your departure. The most common payments include:

  • Compensation for loss of employment – This is often the largest payment and can be tax-free up to £30,000, provided it is classified as an ex gratia payment rather than salary.
  • Notice pay – If the employee is not required to work their notice period, they may receive Payment in Lieu of Notice (PILON), which is subject to tax and National Insurance.
  • Redundancy pay – Employees who are being made redundant may receive statutory or enhanced redundancy pay, depending on their contract.
  • Holiday pay – Any unused annual leave is typically paid as part of the final settlement.
  • Bonuses and commission – If an employee is entitled to a bonus or commission, this may be included in the final payment.
  • Pension contributions – In some cases, the employer may continue to make pension contributions as part of the settlement.

Additional compensation may also be negotiated for non-compete clauses, restrictive covenants, confidentiality agreements or loss of benefits such as Car Allowance. Seeking legal advice ensures you receive the best possible financial package.

Yes, Settlement Agreements have specific tax implications, and employees should understand how different payments are treated to avoid unexpected deductions.

  • Compensation for Loss of Employment – Payments made as part of an ex gratia settlement (a goodwill payment for leaving employment) are tax-free up to £30,000. Any amount above this threshold is subject to income tax and National Insurance contributions.
  • Notice Pay – If an employee is not required to work their notice period, they usually receive Payment in Lieu of Notice (PILON), which is treated as taxable earnings.
  • Accrued Holiday Pay, Bonuses & Wages – Any outstanding salary, holiday entitlement, or contractual bonuses must be taxed as normal income.
  • Pension Contributions – Some agreements allow for part of the settlement to be paid into a pension scheme, which can offer tax advantages.

To maximise tax efficiency, employees are encouraged to seek financial advice before signing to structure their payments in the most beneficial way.

A Settlement Agreement is not just about financial compensation—it can also include valuable non-financial benefits that help employees transition smoothly into their next role. Some of the key non-financial benefits that can be negotiated include:

  • An Agreed Job Reference – You can secure a pre-approved written reference, ensuring your departure does not negatively impact future job opportunities and you know exactly what your new employer will receive as a reference.
  • Confidentiality & Non-Disparagement Clauses – These protect your professional reputation by preventing both you and your employer from making negative or damaging statements about each other.
  • Garden Leave – Some agreements allow you to stay on payroll and receive benefits while being excused from work during your notice period.
  • Continued Use of Company Benefits – You may negotiate to retain private healthcare, company cars, laptops, or mobile phones for a set period after leaving. Or to keep certain assets after the termination date.
  • Waiving of Restrictive Covenants – Some agreements remove or reduce post-employment restrictions, such as non-compete or non-solicitation clauses, allowing you more freedom in your future career choices.
  • Outplacement Support – Employers may agree to fund career coaching, CV writing services, or job placement assistance to help you find a new role.

By negotiating these benefits, you can ensure you leave on the best possible terms, with financial security and career prospects intact.

The time required to negotiate a Settlement Agreement varies depending on the complexity of the case, the willingness of both parties to reach a deal, and the legal advice involved. In general:

  • Straightforward cases – If the terms are clear and agreeable, a Settlement Agreement can be finalised within a few days.
  • More complex negotiations – If an employee wants to increase compensation, adjust restrictive covenants, or secure additional benefits, negotiations can take one to two weeks.
  • High-value or disputed cases – In cases involving unfair dismissal, discrimination, or whistleblowing, negotiations may take several weeks, particularly if legal teams are involved.

Once terms are agreed, your employer’s solicitor will draft the agreement, and you must obtain independent legal advice before signing. Most employers cover the legal fees, ensuring a swift and smooth process at no cost to you.

A confidentiality clause, also known as a non-disclosure agreement (NDA), is a common feature in Settlement Agreements, preventing both you and your employer from disclosing details of the agreement to others.

For employees, this typically means:

  • You cannot discuss the terms of your settlement with colleagues, recruiters, or future employers.
  • You may be restricted from revealing the circumstances of your departure, particularly if the agreement includes a non-disparagement clause preventing negative statements about the employer.
  • You can usually discuss the agreement with your solicitor, accountant, or immediate family, but must not share details publicly.

For employers, confidentiality clauses protect business reputation, trade secrets, and internal disputes from becoming public. While these clauses are legally enforceable, they cannot prevent employees from whistleblowing or reporting unlawful activity, such as discrimination or harassment, to relevant authorities.

You should review confidentiality terms carefully, ensuring they do not restrict future employment prospects or limit your ability to discuss legitimate concerns. If the terms are too broad, they can often be negotiated or clarified before signing.

A Settlement Agreement provides you with financial compensation, legal protection, and certainty when leaving your job. Unlike redundancy or dismissal, it offers a negotiated exit that can include an enhanced payout, a positive job reference, and the retention of workplace benefits.

One of the biggest advantages is that you often receive a tax-free compensation payment of up to £30,000, avoiding the risks and delays of an employment tribunal. The agreement also ensures confidentiality, protecting both your professional reputation and the employer’s interests.

Another key benefit is certainty – you receive a guaranteed settlement without the stress of pursuing legal action. Additionally, most employers cover the legal fees required to review the agreement, meaning you can obtain specialist advice from us no cost to you.

By negotiating the terms, you can secure a better financial package, extend your notice period, and ensure your departure is handled professionally. A well-structured Settlement Agreement provides a fair and mutually beneficial resolution, allowing you to move forward with confidence.

Signing a Settlement Agreement is a significant legal decision, and you should be aware of common mistakes that could lead to a lower payout or restrictive future terms. Some key pitfalls to avoid include:

  • Not Negotiating a Better Deal – Employers often start with a lower offer than they are willing to pay. You should consider negotiating for higher compensation or improved terms.
  • Overlooking Tax Implications – While compensation payments up to £30,000 are tax-free, payments such as notice pay, bonuses, and accrued holiday pay are taxable. Understanding tax liabilities ensures there are no unexpected deductions.
  • Ignoring Restrictive Covenants – Some agreements contain non-compete or non-solicitation clauses that could prevent you from working in the same industry or contacting former clients. These should be carefully reviewed and, where necessary, renegotiated or removed.
  • Failing to Secure a Positive Reference – you should ensure that an agreed reference is included to support your future job applications.
  • Signing Under Pressure – You cannot be forced to sign a Settlement Agreement. Seeking independent legal advice ensures that the agreement is fair and in your best interests.
  • Only Focusing on the Financial Offer – It is common for employees to focus only on the financial offer, and miss clauses or covenants that are too restrictive or unfair.

Taking the time to review, negotiate, and seek legal guidance can result in a better financial package and improved exit terms for you.

If you choose not to accept your Settlement Agreement, you retain the right to pursue legal action against your employer, such as filing a claim for unfair dismissal, discrimination, or wrongful termination. Without an agreement in place, your employer may still proceed with dismissal, but they must follow standard employment law procedures to avoid potential legal claims.

In some cases, refusing the initial offer can lead to further negotiations, as your employer may be willing to increase compensation or improve terms to secure a signed agreement. However, there is no guarantee that your employer will improve their offer, and taking the case to an employment tribunal can be time-consuming, costly, and uncertain.

You should carefully weigh your options and seek independent legal advice before rejecting a Settlement Agreement to ensure you are making the best decision based on your circumstances.

A Settlement Agreement and a Redundancy Package both involve an employee leaving their job, but they serve different purposes and have different legal implications.

A Redundancy Package is offered when a role is no longer needed, often due to business restructuring, financial difficulties, or technological changes. Employees in redundancy situations may be entitled to statutory redundancy pay, notice pay, and any accrued benefits based on their length of service. Redundancy dismissals must follow a fair process, including consultation periods and the opportunity for alternative employment within the company.

A Settlement Agreement, on the other hand, is a legally binding contract used to resolve employment disputes, performance-related dismissals, or other terminations where an employer wants to ensure there are no future legal claims. Unlike a redundancy package, a Settlement Agreement is negotiable, meaning employees can often secure a higher payout, additional benefits, and a positive reference. In many cases, Settlement Agreements include compensation beyond statutory entitlements in exchange for the employee waiving their right to pursue legal action.

Employees facing redundancy should consider whether a Settlement Agreement offers a better outcome, particularly if they have potential claims or can negotiate enhanced financial terms. Seeking legal advice helps ensure you receive the best possible settlement.

Acas (Advisory, Conciliation and Arbitration Service) is a UK government-funded organisation that provides independent advice and dispute resolution services for employers and employees. Acas plays a key role in settlement negotiations, ensuring both parties understand their legal rights under the Employment Rights Act (ERA) 1996.

If an employer refuses to negotiate a Settlement Agreement, employees must inform Acas before proceeding with an employment tribunal claim. Acas will then offer Early Conciliation, where a trained conciliator attempts to reach a settlement without the need for a tribunal. If successful, the terms of the agreement are recorded in a COT3 settlement, which is legally binding in the same way as a standard Settlement Agreement.

While both COT3 settlements and Settlement Agreements achieve the same outcome, some employees choose to negotiate through a solicitor instead of Acas, as a solicitor advocates directly for the employee’s best interests. Acas remains neutral, whereas a solicitor can push for better financial terms, remove restrictive clauses, and ensure the agreement fully protects the employee.

In most cases, your employer covers the cost of legal advice, meaning you receive expert representation at no personal expense. If their contribution is too low, we contact your employer to request an increase, and in 9 out of 10 cases, they agree to cover the full cost—ensuring you get the best possible settlement terms.

At My Law Solicitors, we specialise in Settlement Agreements, Termination Agreements, and Employment Law, ensuring employees secure fair compensation and the best possible exit terms. Our expert solicitors provide independent legal advice, ensuring that you fully understand your rights and get the maximum financial settlement available.

We offer a free, no-obligation consultation, and in most cases, your employer covers our legal fees, meaning you pay nothing. If your employer’s contribution is too low, we negotiate with them to increase it—this is successful in 9 out of 10 cases.

Our advice can be over the telephone or Teams/WhatsApp video, or you can contact our office in Harrogate.

  • Harrogate Office: 01423 209 103

Settlement Agreements Made Simple: Protect Your Interests Today.


A settlement agreement (sometimes called a compromise agreement) is a legally binding contract between an employer and an employee.

If you’ve been presented with one, it can sometimes be a shock and may leave you with a significant amount of worry and stress about what it means for you and your family.

Often, our clients are not in a clear head space to deal with the agreement and do not know if the offer presented to them is fair and reasonable.

At My Law Solicitors, we specialise in helping employees navigate settlement agreements with confidence. We act on your behalf and protect your interests. We help you understand if the agreement is fair, and can negotiate on your behalf so you don’t have to speak to your employer again.

Struggling for time?
Ask our team for a callback below.

Common Settlement Agreement Concerns We Solve.

  1. Are the terms fair?
    We’ll review your agreement and advise if the compensation and conditions align with legal standards and your best interests.
  2. Can I negotiate for more?
    Our team is skilled at negotiating higher settlements and more favourable terms. We can do this for you.
  3. What are my rights?
    We’ll ensure you understand exactly what rights you’re waiving and if the agreement protects your future interests.
  4. Can I change the agreement after signing?
    Usually not. This is why it’s extremely important to know your rights and understand what you may be giving up before signing.
  5. Who do you work for?
    We work for you, not your employer. Our team is in your corner and here to protect your interests.

Why Choose My Law Solicitors?

  • Specialist Expertise:
    Our employment law team has over 20 years of experience handling settlement agreements, ensuring your rights are protected.
  • Tailored Support:
    We offer personalised advice that reflects your unique circumstances.
  • Efficient Service:
    We understand time is critical, so we prioritise quick, clear, and effective communication.
  • Results-Driven:
    Our goal is to secure the best possible outcome for you.

Why Acting Fast Matters.


Settlement agreements often come with deadlines. Acting quickly ensures you don’t miss the opportunity to negotiate better terms or challenge unfair conditions. Contact us today to get started.

What’s Included in Our Settlement Agreement Service?

  • Comprehensive Review:
    We’ll analyse every detail of your settlement agreement.
  • Clear Advice:
    No jargon—just straightforward guidance on your options.
  • Expert Negotiation:
    We’ll negotiate with the other party on your behalf to secure better terms.
  • Legal Compliance:
    We ensure all agreements meet employment law requirements, so there’s no room for disputes later.

Speak to a Settlement Agreement Expert.


Don’t navigate this alone. Let us take the stress off your shoulders. With our help, you’ll have the clarity and confidence to move forward.

Contact Us Now:
 
  • Email: info@mylawsolicitors.co.uk
  • Phone our Harrogate office: 01423 209 103

Trusted by Clients Across North Yorkshire and beyond.


At My Law Solicitors, we’ve helped countless employees up and down the country with their Settlement Agreements.

Let’s start working on yours, today.

Want to know more about Settlement Agreements?

Visit our recent Blog here: Settlement Agreements – What You Need to Know 🔗
Visit the ACAS website here: ACAS Settlement Agreement Guidance 🔗

Latest News.

Contact Information.

Office.

Work Hub,
12 Station Parade,
Harrogate,
HG1 1UE

Contact.

info@mylawsolicitors.co.uk
01423 209 103

Open Hours.

Monday-Friday 9:00am - 6:30pm
Saturday 9:00am - 5:00pm
Sunday - Closed