Our approach
What we cover
A settlement agreement (previously called a compromise agreement) is a legally binding contract between an employer and an employee, under which the employee agrees to waive certain employment claims in exchange for a financial payment and other agreed terms. They can be used to conclude redundancy processes, resolve performance and conduct situations, and bring ongoing disputes to an end. Used well, they're an efficient and final resolution. Drafted badly, they can fail to settle the claims you intended, create tax complications, or come back to bite you later.
We act for employers on settlement agreements: drafting the document, advising on the structure, negotiating the terms, and checking the agreement properly settles the claims you need it to settle. We also advise on the tax treatment of payments alongside your accountants where required, because the tax position matters and the way a payment is structured can affect both the employer and the employee.
How we work with you
Every settlement agreement is different, but there are errors we see repeatedly: incorrect employee or entity names, cross-references that don't match, payment calculations that don't reflect what was agreed, restrictive covenants that are wider than they need to be (or narrower than the employer intended), and missing claims. The last of these is particularly important. If the agreement doesn't specifically reference a claim, it may not be settled. That includes claims around pensions, share options, or discrimination that may not be on anyone's radar at the point of drafting.
We draft to close the gaps. Before anything is finalised, we check the schedule of claims, verify the calculations, and make sure the restrictive covenants are proportionate and properly drafted. If we're reviewing an agreement that the other side has produced, we approach it the same way: looking for what's missing as much as what's there.
On the negotiation side, we help you understand what's reasonable and what isn't, what the employee's likely alternatives are, and where there's room to move. Settlement doesn't have to mean paying over the odds, and we'll give you a straight view on what an agreement should look like in your circumstances.
Who we work with
Settlement agreements come up in the context of redundancy, performance exits, and disputes, and for many employers they're not a regular occurrence. Our clients range across founder-led agencies, tech businesses and high-growth companies. We're used to explaining the process clearly and making it as straightforward as possible.
We also act for employees through Check My Settlement, our sister service for people who have been offered a settlement agreement and need independent legal advice. The ILA requirement isn't optional: a settlement agreement is not legally binding unless the employee has received independent advice from a qualified adviser on the terms and their effect. If you've been offered a settlement agreement and need advice, visit Check My Settlement.
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Meet the team
Whether it's putting in place the right documents for your staff, handling tricky processes or dealing with employment disputes, Georgiana will calmly navigate your business through employment law requirements.
Georgiana has acted for clients ranging from start-ups and SMEs across a host of different industries working at both a Legal 500 firm and boutique west end London law firm gaining experience and knowledge from a broad spectrum of clients and cases. She enjoys working with clients as their businesses grow and providing the employment law support, they need at each stage of those journeys.
Having worked on both the employer and employee sides, she has a real insight into how each party is likely to approach a matter. She delivers clear, pragmatic advice and practical solutions in a friendly, no-nonsense manner.
When not crafting bespoke employment solutions, Georgiana can be found running early in the morning, enjoying ballet performances and art exhibitions, going on long walks and being by the sea.
Alistair co-founded Tend Legal with Shona on a simple idea: that small and medium-sized businesses deserve the same quality of legal advice as large companies, without the large firm experience.
As a solicitor with a broad commercial practice, he advises business owners on the full range of issues that come with running and growing a company. That means employment law: advising on settlement agreements, workforce decisions and the day-to-day employment questions that land on founders' desks. It means commercial work: negotiating and reviewing contracts, supplier agreements, and the commercial arrangements that keep a business running. And it means corporate transactions: from business sales and acquisitions to investment rounds, share structures and restructures.
Before co-founding Tend Legal, Alistair was a partner at Woodfords Solicitors in South West London, where he spent over a decade building a reputation for clear, commercial advice to SMEs. He is known for his calm approach, his ability to cut through complexity, and his willingness to give a straight answer.
When not working or acting as taxi driver to his three children, Alistair can be found riding bikes or skateboards, playing various instruments, or at church.
Frequently Asked Questions
It does, but only if it's correctly drafted and the employee has received proper independent legal advice (ILA) on its terms and effect. Both conditions must be met. An agreement that lists the wrong claims, or where the ILA wasn't properly provided, may not be enforceable. This is why the drafting matters, not just the signing.
So far as possible, it should settle any claim relating to the employee's employment or the termination of their employment. The settlement agreement must identify the claims that are being settled. Typically that would include unfair dismissal, breach of contract (including notice pay, bonus and commission), redundancy pay, unlawful deductions, holiday pay and discrimination claims under the Equality Act. Often, settlement agreements will include a long list of all the statutory claims that are being waived. There are some claims that can’t be waived in a settlement agreement: claims relating to accrued pension rights, claims for personal injury which are not known about at the date of the agreement, and claims to enforce the settlement agreement.
The first £30,000 of a genuine termination payment is usually tax-free, but the rules are more complex than they appear. Notice pay (whether in lieu of notice or garden leave) is always taxable. Payments relating to injury to feelings in discrimination cases have their own treatment. We'll flag the tax position and work alongside your accountants to make sure the agreement is structured correctly.
Yes. A settlement agreement is a negotiated document, not a take-it-or-leave-it offer, and employees are entitled to propose changes. The solicitor providing independent legal advice (ILA) will review the terms and may raise issues that prompt a renegotiation.
One of the key things we consider with you is each party's BATNA: their Best Alternative To a Negotiated Agreement. In other words, what happens if no deal is reached? For an employer, that might mean a tribunal claim and the cost and uncertainty that comes with it. For an employee, it might mean pursuing a claim they may or may not win, with no certainty of outcome and legal costs to consider. Understanding both sides' alternatives is what tells you how much room there is to negotiate, what's reasonable to accept, and when it's worth standing your ground. If you're the employer, we'll help you think this through before you respond to any proposed changes.
In most cases, a settlement agreement can be agreed within one to two weeks if both sides are willing. The employee needs a reasonable period to take independent advice: ACAS recommends ten working days as a reasonable period for an employee to consider a settlement agreement. If there's a dispute about terms, it can take longer. We'll give you a realistic timeline based on your situation.