Settlement Agreement Solicitors Glasgow

Settlement agreement solicitors in Glasgow

A settlement agreement is a legally binding contract between you and your employer. It is usually used to bring your employment to an end on agreed terms, and in return for a payment you agree not to bring certain claims against your employer, for issues such as unfair dismissal or discrimination because of disability, sex or race, in an employment tribunal.

Our employment lawyers in Glasgow advise Scottish employees and clients throughout Scotland. We review the agreement, explain it in plain English, give you an honest view of whether the offer is fair and, if it falls short, negotiate with your employer on your behalf. We then sign the adviser’s certificate that makes the agreement valid.

What is a settlement agreement?

Settlement agreements used to be called compromise agreements. They are governed by the Employment Rights Act 1996, and this area of employment law is the same across England, Scotland and Wales. For an agreement to be valid, it must:

• be in writing
• relate to the particular complaints or proceedings it settles
• be signed after you have received advice from a relevant independent adviser, usually a solicitor or, in some cases, a certified trade union official
• name the adviser, who must hold professional indemnity insurance
• state that these conditions have been met

Employers use settlement agreements in many situations, including redundancy, performance or conduct concerns, a breakdown in the working relationship, or a grievance or dispute they want to resolve. Read more about redundancy law in Scotland.

What a settlement agreement usually covers

Every agreement is different, and some terms are open to negotiation. We check each clause so that you know exactly what you are agreeing to.

Should I accept a settlement agreement?

It depends on what you are being offered and what you are being asked to give up. We look at:

• whether you have a strong claim, for example for unfair dismissal or discrimination, and what it might be worth
• what you are already entitled to, such as notice pay, holiday pay and any redundancy pay
• how the payment will be taxed
• the reference and how your departure will be described
• any restrictions on your future work
• your own priorities, such as a quick clean break or protecting your reputation

A settlement agreement can be a good outcome. It is usually quicker, more certain and less stressful than a tribunal claim, and it keeps things private. But you should never feel rushed into signing something you do not understand.

Negotiating a better deal

Many first offers can be improved. Where there are grounds, we put your case to your employer or their solicitor, setting out the claims you would be giving up and why the offer should be increased. Negotiations are usually carried out on a without prejudice basis, which means what is said generally cannot be used later in a tribunal. Employers can also hold a protected conversation with you about leaving, which is normally confidential in an unfair dismissal claim unless there has been improper behaviour.

As well as the payment, it is often possible to agree a better reference, a later leaving date, the wording of any announcement or the removal of a restriction that would make it hard to find your next job.

How we help, step by step

Tax on settlement payments

The first £30,000 of a genuine compensation payment for the loss of your job is usually free of income tax and National Insurance. Some payments are always taxed in the normal way, including salary up to your leaving date, holiday pay, bonuses and notice pay. Notice pay is taxed even if it is described as compensation. We check how your payment has been split so that there are no surprises.

Employment tribunal time limits and recent changes

If you do not sign and want to bring a claim instead, strict time limits apply, and you must normally contact ACAS for early conciliation before a claim can be lodged. Under the Employment Rights Act 2025, the time limit for most tribunal claims increased from three months to six months where the relevant date is on or after 1 October 2026.

Further changes are due. For dismissals with an effective date of termination on or after 1 January 2027, the qualifying period for ordinary unfair dismissal claims falls from two years to six months, and the cap on the compensatory award is removed. These changes can affect what a fair settlement looks like, so take advice early.

Why choose Simplicity Legal for your settlement agreement?

• Fast turnaround when you are working to a deadline
• Honest advice on whether the offer is fair
• Negotiation to improve the terms where there are grounds
• Plain English explanations of every clause
• Regulated by the Law Society of Scotland

Contact our settlement agreement solicitors in Glasgow

If your employer has offered you a settlement agreement, or you think one may be coming, the sooner you take advice the better. Seek legal advice before you sign anything. Call 0141 433 2626 or send an enquiry, and one of our solicitors will be in touch. We also have offices in Edinburgh and Dumfries. Clarity Simplicity Ltd is regulated by the Law Society of Scotland for the legal services we provide.

Settlement agreements are also handled by our sister brand Complete Employment Solicitors. Read our guide to settlement agreement questions answered by a solicitor and find out more about your right to be free of discrimination at work.

Your settlement agreement questions answered