Settlement Agreements & Rights on Termination – How Pepperells Helps You Leave with Peace of Mind

When your employment comes to an end - whether voluntary or involuntary - a properly negotiated settlement agreement, formerly called a “compromise agreement”, can be crucial in safeguarding your rights. Here’s why it’s worth taking it seriously:

1. What Is a Settlement Agreement?

A formal deal between employer and employee, it typically includes:

• A financial sum in exchange for you waiving rights to bring legal claims (e.g. unfair dismissal, discrimination).
• Custom terms covering references, confidentiality, garden leave, and more.

These agreements are legally binding - but only if fair and entered into freely, with independent legal advice.

2. The New Focus on NDAs and Transparency

The recent Employment Rights Bill has introduced amendments aimed at preventing misuse of Non-Disclosure Agreements (NDAs) in harassment and discrimination exits. This follows widely reported examples where exits were mishandled via NDAs to silence victims.

As a result:

• Employers will likely face higher scrutiny over NDAs.
• Draft agreements must be clear, voluntary, lawful - and cannot cover up unlawful behaviour.

At Pepperells, we make sure your confidentiality agreement is properly scoped and does not silence legitimate rights.

3. Know & Protect Your Rights

Before signing anything, consider:

• Unfair Dismissal: With the upcoming day-one protection for unfair dismissal (eliminating the current two-year qualifying period), even short-tenure employees may have clear grounds to challenge dismissal.

• Discrimination & Harassment: Settlements must not prevent you from reporting wrongdoing or being compensated for past mistreatment.
• Vital Terms: Does the agreement adequately cover:

• Notice pay
• Bonuses or commissions
• Holiday pay.

• Tribunal Claims: The time limit for claims may soon extend - so timely legal advice is vital.

4. Why Expert Advice Matters

Pepperells will help you with:

1. Understanding the Offer: Are you being short-changed on redundancy, notice pay, or holiday?
2. Privacy Safeguards: Ensuring your NDA doesn’t unfairly silence you - especially about harassment or discrimination.
3. Negotiation: We can seek better terms - more compensation, extended garden leave, enhanced references.
4. Legal Certainty: We confirm the agreement is binding, fair, and properly drafted under UK employment law.
5. Post-Signing Support: If issues arise later, having been advised by us increases enforceability.

In Summary: Your Termination, Your Power

Settlement agreements are powerful tools - but only when handled correctly and fairly. At Pepperells Solicitors, we empower clients to:

• Evaluate whether your settlement offer is fair and protects your entitlements.
• Negotiate improvements and clarity.
• Avoid unfair silence through misused NDAs.
• Proceed with confidence, knowing your rights are safeguarded and enforceable.

Interested in reviewing a settlement agreement or discussing your rights at termination?
Contact Pepperells today to arrange a no-obligation consultation. Your exit can be fair, dignified, and well-planned.