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Settlement Agreement Solicitors in Manchester

Settlement Agreement Solicitors in Manchester

Settlement agreements are commonly used in employment matters, where the employer and the employee reach specific terms that prevent the employee addressing a claim to a local court. However, this can be done as long as the employer will state that he or she will provide a compensation to the employee, instead of addressing the claim to a local court.

Considering that this type of agreement must reflect both the rights and obligations of the employer and the employee, it is best to request legal advice and representation from settlement agreement solicitors in Manchester. Our team of lawyers has extensive legal experience in drafting this type of agreements and can also negotiate the terms on the benefit of our clients.

What are the characteristics of a settlement agreement in the UK?

Persons who will be offered settlement agreements from their employers should definitely receive legal advice from our settlement agreement solicitors in Manchester. This is highly advised, given that this type of document should contain specific provisions, which are mandatory in accordance with the applicable law. Our lawyer in Manchester will present below some of its main characteristics:

  • the agreement has to be completed in writing and has to refer to specific employment matters which are negotiated between the employee and the employer;
  • the employee needs to receive legal advice from settlement agreement solicitors in Manchester, so that he or she can make an informed decision with regards to the consequences of the terms included in the document;
  • the document must contain clear information on the settlement amount that the employee will receive;
  • it must also contain the conditions under which the settlement can take place;
  • information on the legal advisor who has offered legal advice on the respective settlement agreement.

Mandatory provisions included in a British settlement agreement


A settlement agreement must contain a set of mandatory provisions, such as the names of the employer and the employee, the date when the contract is enforced, the background of the employment and the fact that it is set out for the purpose of obtaining certain employee claims without going through the court, and many others, including the fact that the employer will not he held accountable for other liabilities.

Considering the complexity of the document, it is highly recommended that you request the services of our settlement agreement solicitors in Manchester, who can prepare the document in accordance with the mandatory legal requirements. Below, you can find out other important matters:

  • settlements of up to GBP 30,000 (in certain cases, up to GBP 50,000), can be exempt from taxation and national insurance;
  • confidentiality matters are established in accordance with the rules of the Public Interest Disclosure Act 1998;
  • the costs associated with signing the settlement agreement are paid by the employer in period of maximum 30 days since the invoice was issued;
  • it must be noted that the document is signed only between the employer and the employee, therefore no other third parties can be included – the provisions of The Contracts (Rights of Third Parties) Act 199 will not apply.

What are the clauses of the settlement agreement in the UK?


The document must contain 13 mandatory clauses. Our employment solicitors in Manchester can advise on these clauses and can represent the best interests of employers and employees in contract matters, such as the settlement agreements, or in any other employment-related issue.

The 1st clause refers to the background of the employment, as mentioned above. Here, other sub-clauses can appear and this can be the case of all other clauses included in the contract. The 2nd clause refers to the definition of the contract – such as who is the employee, the employer, the settlement, etc.

The 3rd clause to be included refers to the termination date of the employment – here, it is very important to mention whether the end of the employment is made is through a notice (a period of time in which the employee is required to work after the notice of termination) or through a payment in lieu of notice (also referred to as PILON).

Our settlement agreement solicitors in Manchester can provide more details on the 2 options and which can be the one that is more suitable for your case. The 4th clause refers to the withdrawal of proceedings and waiver, while the 5th clause defines the settlement payment.

Our lawyer in Manchester has mentioned above the sum that is usually added as a settlement payment. As mentioned earlier, this sum can be exempted from taxation, but not in all cases, therefore tax advice is recommended as well.

To be sure whether the sum of money is exempt from taxation, a quick verification with the HM Revenue &Customs (HMRC) must be made and for this, you can rely on the services of our solicitors in Manchester city centre.

The 6th clause refers to the conditions that must apply to the settlement agreement, while the 7th refers to property (what can be considered employee property and what is employer property). The 8th clause specifies the main confidentiality provisions that must be respected. Our settlement agreement solicitors in Manchester can provide more information on the rest of clauses to be included in the contract.

Are employees required to sign a settlement agreement in the UK?

If you are the employee of a company and if you receive a settlement agreement that will provide the conditions for various legal situations in which the parties may need to address to a court, but you do not agree with the terms of the contract, you are under no obligation to do so.

From a legal point of view, the contract becomes legally binding only after the employees have receive legal advice from our settlement agreement solicitors in Manchester; you should know that the document is generally offered prior to the termination of an employment contract.

It can represent a suitable document when there are legal grounds for terminating the employment based on disciplinary matters or redundancy matters.

It is generally used as way of avoiding multiple legal complications that can arise when a contract is terminated, but we highly recommend you to address our lawyer in Manchester for in-depth information if you have been offered a settlement agreement.

You can also address local Manchester law firms if you are an employer who wants to know when it is most suitable for all parties to sign this type of document.

You can also send your documents concerning a visa application that has been denied. Our immigration lawyers in Manchester can analyze the documents and tell you if you can appeal the respective decision, in accordance with the rules of the law.

What is the main data on employment disputes in the UK?

Employment disputes in the UK are fairly common and the impact of the Covid-19 pandemic had a negative result on litigations between employers and employees. Employment disputes in the UK are generally related to the termination of a work contract, age discrimination in the work environment, disability discrimination and other similar matters.

For those who are not the recipients of a settlement agreement and who need legal representation on any of the above mentioned, the local Manchester law firms specialized in this field remain at your disposal for legal advice and legal representation in front of the court. We will present below some of the work related claims and work disputes information:

  • according to the Ministry of Justice, citing data from the Tribunal Statistics Quarterly, in the period 2022-2023, the highest claim for age discrimination was of GBP 84,723;
  • in the same period of time, the highest award decided by a court was of GBP 1,767,869, in a claim related to disability discrimination;
  • the total number of claims in 2022-2023 was 85,325;
  • if you will be required to sign a settlement agreement, please be aware that your employer is required to pay for you the legal fees charged by settlement agreement solicitors in Manchester, which generally vary between GBP 250 – GBP 500.

For those who are foreign employees working in the UK, we also invite you to address our immigration solicitors in Manchester for assistance on any issue concerning your residency, visa, etc. Foreign workers can also address our settlement agreement solicitors in Manchester for any further advice on settlement agreements matters.

Our lawyers can also provide in-depth legal assistance on employment contracts signed with individuals who are residents or foreigners, so do not hesitate to address us.

For this particular service, our employment lawyers in Manchester remain at your disposal for information on any type of contract or agreement that can be signed as per the rules of the employment law. Please contact us for further information on settlement agreements and any other type of document that can be analyzed by our lawyers.