How We Use Settlement Agreements to Protect Your Rights and Achieve the Best Outcome for You

Facing a settlement agreement can feel overwhelming. Whether it arrives unexpectedly or after weeks of workplace tension, you’re suddenly being asked to sign a legally binding contract that affects your career, finances and your future.

At moments like this, specialist legal advice isn’t just helpful – it’s essential. And that is where our Employment Law team at mlplaw comes in.

What is a Settlement Agreement?

A settlement agreement is a contract between an employer and employee used to resolve workplace issues or bring employment to an end. In exchange for waiving the right to bring employment claims, the employee usually receives a financial payment and other agreed terms (for example, a reference).

Settlement agreements are commonly used in situations involving:

• Redundancy
• Workplace disputes or grievances
• Performance or disciplinary issues
• Negotiated exits
• Senior-leaver packages involving bonuses, restrictive covenants, or shares

For a settlement agreement to be legally valid, you must receive independent legal advice, and it is usual, where the terms are broadly agreed, for the employer to contribute towards the cost.

Negotiated vs Accepted Settlement Agreements: What’s the Difference?

When an employee is given a settlement agreement, it generally falls into one of two categories: an accepted settlement or a negotiated settlement. Understanding the difference helps employees know what to expect and why legal advice is so important.

Accepted Settlement Agreements

An accepted settlement is where:

• The employer makes an offer
• The employee is broadly happy with the terms
• No major changes are needed to the compensation, notice period, or other provisions

In these cases, the solicitor’s role is primarily to:

• Explain the agreement clearly
• Ensure the terms are lawful and the waiver of claims is appropriate
• Confirm the employee understands what they are signing
• Check for any hidden risks (references, restrictive covenants, tax wording, post-termination obligations, etc)

Key Features of accepted settlements:

• Usually straightforward
• Completed quickly
• Often covered entirely by the employer’s contribution to legal fees
• Ideal where both parties simply want to draw a line under the employment relationship

This is the typical scenario where the employer has already put forward a fair package or where the relationship remains amicable.

Negotiated Settlement Agreements

A negotiated settlement is where:

• The initial offer is not acceptable
• The employee feels that they are being undervalued or treated unfairly
• Key elements need improving (money, references, restrictions, timing, or compensation for specific claims)
• Circumstances are more complex, e.g. senior employees, directors, bonus/share schemes, allegations of discrimination or whistleblowing, or ongoing disputes

In these cases, the solicitor’s role expands to:

• Assessing the employee’s potential claims and leverage
• Advising on the value of those claims
• Strategically negotiating a better financial package
• Securing improvements to the contractual terms
• Ensuring the employee’s reputation and future career are protected

Typical negotiation points include:

• Increasing the financial compensation
• Securing a better reference or agreed announcement
• Removing or softening restrictive covenants
• Ensuring bonuses, commission, or share options are paid
• Extending employment termination dates or gardening leave
• Ensuring tax-efficient structuring where appropriate

Negotiated settlements require more time and legal expertise, but they often lead to significantly better outcomes for employees.

Which Type Applies to You?

Employees often don’t know whether their case should be “accepted” or “negotiated” and that’s exactly why early legal advice is essential. A solicitor can quickly spot:

• If the offer is fair
• If you are entitled to substantially more

Why Employees Choose Us

When your job, reputation, and financial stability are at stake, you need more than a signature on a piece of paper, you need someone firmly in your corner.

1. Clear, Expert Guidance

We translate the legal jargon into plain English. You’ll know exactly what you’re being asked to sign, what rights you are giving up, and what you’re entitled to receive.

2. Fair and Firm Negotiation

If the offer isn’t good enough, we’ll tell you and we’ll negotiate on your behalf to improve it.  Our goal is simple: to secure the best possible package for you.

3. Fast, Efficient Turnaround

Settlement agreements often come with tight deadlines. We act quickly, without compromising care or attention to detail so you can move forward with confidence.

4. Support that Reduces Stress

Workplace exits can be emotional. We provide calm, measured advice that gives you clarity at a difficult moment. You’ll always feel supported and informed, with your best interests driving every step.

What we offer

• Independent legal advice
• Transparent pricing
• Negotiation services
• Specialist support for senior employees, directors, and employees with shares or complex packaging

Why acting Quickly Matters

Settlement agreements often include deadlines and once you sign, you typically cannot bring claims later. Getting advice at the earlies opportunity ensures that:

• You don’t accidently waive valuable rights
• We have time to negotiate better terms
• You can make decisions from a position of strength, not pressure

Bring your Agreement to Us Today

If you’ve been handed a settlement agreement, or you think one may be coming, don’t navigate it alone. Our specialist Employment Law Team at mlplaw has extensive experience securing strong outcomes for employees across all sectors and seniority levels.

We’re here to protect your rights, maximise your settlement, and help you move confidentiality into the next stage of your career.

Get in touch with our team today, and let’s take the next steps together.