Case Study: How mlplaw secured £28,663, an improved reference and reduced restrictions for a client

An employee at a large media company returned from maternity leave only to find herself overwhelmed by excessive workload and a lack of support. The situation soon became untenable, and the employer presented her with a settlement agreement.

The initial terms of the agreement were harsh. It included a 12-month restrictive covenant that would have stopped her from working for any other media company. Understandably, she felt this was unreasonable and sought advice from mlplaw.

Our expert employment solicitors reviewed the proposed terms and advised the employee that the restrictions were too severe. If signed as-is, the agreement would have seriously limited her career options and posed legal and financial risks if breached.

On a without prejudice basis, we contacted the employer and negotiated amended terms. We reduced the restrictive covenant from 12 months to 3 months, giving the employee far more freedom to continue her career. We also secured a more favourable reference and a substantial financial package:

• £9,583 in notice pay

• £16,773 compensation for termination

• £2,307 for lost contractual benefits

This amounted to a total of £28,663, plus stronger post-employment prospects.

What is a Settlement Agreement?

A settlement agreement is a legally binding contract between an employer and employee, often used to resolve employment disputes or facilitate a termination. It typically includes financial compensation and outlines agreed terms to avoid future legal claims.

For a settlement agreement to be valid in England and Wales, it must meet these key criteria:

• Be in writing

• Refer to a specific complaint or issue

• Be reviewed by an independent solicitor

• Include details of the adviser and legal insurance

• State that the Employment Rights Act conditions are satisfied

Settlement agreements often include:

• Ex gratia payments (tax-free compensation)

• Redundancy pay and other benefits (e.g. holiday pay, bonuses)

• Confidentiality clauses

• Restrictive covenants

• Agreements not to pursue claims like unfair dismissal or discrimination

Employees do not have to accept the first offer. You can negotiate better financial terms, a more favourable reference, or fewer restrictions.

How mlplaw Can Help

We are experienced settlement agreement solicitors working with employees and employers across the UK. Whether you’re facing redundancy, workplace disputes, or difficult post-employment terms, we can help you reach a better outcome.

Your employer will typically cover your legal fees, so you can benefit from our expert advice without financial stress.

Contact our Employment team today for support with your settlement agreement.