Settlement agreement

2 reviews
drsWe can check your edited document. Find out more
This agreement includes the legal provisions to qualify a compromise agreement so as to prevent a later claim before the court. It is drawn primarily with a view to settling a claim by a more expensive employee. The agreement can however, be used with the same effect for a case involving a more junior staff member.
Compliant with the latest law
Document propertied
Document properties
  • Length:11 pages (2800 words)
  • Available in:
    MsWordMicrosoft Word DOCXApple pagesApple PagesRTFRTF
Backed by our watertight guarantee

If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.

Edit Document
Written in plain English

We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.

Guidance notes included

You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.

Support from our legal team

We offer free support by email in respect of editing the document. You can also use our Document Review Service if you want to our legal team to check that the document will do as you intend.

Up to date with the latest law

Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.

How our service works
Edit Your Document
Download your document & complete it at your own pace. Our guidance notes explain what to consider and how to edit.
Upload for Legal Review
Let our legal team check that the document does what you intend.
Print, Date & Sign
Signing the document makes it legally binding.

About this document

Why use this document?

Avoid heated situations and disagreements - end your relationship wisely and with care using this document.

If an employee and employer agree to end the contact on terms other than those in the contract of employment it is crucial to ensure that the agreement is mutual in order to avoid claims later. This sort of agreement is subject to strict criteria. Unless you use the right document, your agreement will not qualify.

The compromise agreement has been drawn primarily with a view to settling a claim by a higher paid employee but of course the agreement can be used with any level of employee, from junior to a director.

If a senior employee has been employed under a service contract which does little to protect the company, this document will help to repair the damage by imposing “usual” provisions as a fair exchange for the money you will offer.

Note: many professional advisers overlook the necessity for the employee to have a prospective or actual claim. In most cases it will be necessary to have terminated the employment before this type of agreement can be used to any effect. However, that is not to say “without prejudice” negotiations cannot take place in the knowledge that a termination is proposed.

Who will use this document?

  • An employer in any organisation wishing to agree terms for termination of employment
  • An employee whose employment has been terminated, who wishes to negotiate terms for settlement of claims
  • Suitable for any employee: drawn to settle very large claims with senior staff, but suitable also for junior staff


  • Continuation of employment for fixed period until the “termination date” - as short or long a period as you wish
  • Extent of continuing entitlement to pay and benefits
  • Return of organisation's property
  • Return of car
  • Guarding secrets and information
  • The compensation package
  • Restrictions on future competition by the ex-employee
  • Press release and publicity
  • Information to qualify the agreement under relevant employment legislation
Reviews of this document
4.5 out of 5 stars
2 Reviews
5 star
4 star
3 star
2 star
1 star
Recent reviews
06 December 2020
A good precedent/template for settlement agreements. Adaptable to multiple situations plus good explanatory notes which help customisation.
Andrew Freeman
Review of the New Zealand version
02 March 2020
Helpful template, easy to adapt. The guidance notes are especially helpful. The quick process and reasonable cost, were bonuses.
Sonja Van Oudtshoorn
Review of the South African version
© 2000 - 2023 Net Lawman Limited.
All rights reserved