A settlement agreement is a legally binding contract where the employee agrees to leave on agreed terms and give up specific claims, in return for an agreed package. Both sides get certainty and a clean break, and part of the payment can often be paid tax-free up to a long-standing threshold.
They have to be handled the right way, at the right time, with the right legal protections, and the employee has to take independent legal advice for it to be valid. Done well, they're one of the most useful tools an employer has.
Every situation has its own details, and those details change the right answer. For a read on yours, take the free Employee Situation Check or book a call.
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How to handle this, in a couple of minutes
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General guidance to help you decide your next step, not legal advice. Employment law changes, so always check the current position for your own situation.
