A team of specialist solicitors in four locations

Is a settlement agreement the same as a compromise agreement? Are settlement agreements legally binding? And are they only used in redundancy situations? Our Employment solicitor Clare Thomas explains all in this guide to settlement agreements.

What is a settlement agreement?

Previously known as a compromise agreement, a settlement agreement is recognised by statute as a legally binding contract between an employer and employee, which waives an employee’s right to bring most claims in the employment tribunal and other…