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Expert legal advice on negotiated exits and severance packages

Determining a proper exit strategy allows you to retain control over what can be a challenging process. Our employment law team regularly advises both employers and senior employees on terminating employment including redundancy and the terms and effect of settlement agreements.

Senior employee exits are rarely straightforward – whether amicable or contentious, the legal, financial and reputational risks on both sides are real. Settlement agreements can be a key tool in ending employment relationships cleanly and conclusively, requiring expert negotiation and preparation to protect the interests of those concerned.

On this page

  • Who we help – we advise employers and senior professionals on negotiated exits.
  • How we help – tailored advice on exit strategies, settlement agreements and managing collective redundancies.
  • Why choose us – from our proven expertise and pragmatic advice to our commercial-mindset.
  • Recognition for our solicitors – Chambers and the Legal 500’s views on our employment team.
  • Frequently asked questions – on settlement agreements.
  • Latest news and insights – on employment in today’s workplace.

Who our settlement agreement solicitors can help

We help employers and senior professionals manage exits confidently, minimising the risk of litigation while protecting best interests, future prospects and professional reputations.

Employers

Our experienced solicitors regularly advise employers on:

  • Terminating employment in high-risk or sensitive scenarios
  • Preparing legally binding settlement agreements to waive claims and protect your business from future claims
  • Negotiating severance packages that accurately reflect the responsibilities of the role
  • Enforcing post-termination restrictions and protecting confidential information
  • Group/collective settlement agreements in large-scale redundancies

Senior executives

We also provide discreet and strategic legal advice to board members, directors, consultants and founders during exit negotiations, including:

  • Independent legal advice on settlement agreements
  • Negotiating better exit terms in relation to bonuses, performance-based incentives and equity
  • Restrictive covenants and implications for future employment
  • Formulating exit plans in sudden or high-pressure situations such as whistleblowing, a workplace investigation or regulatory concern
  • Resolving disputes around breach of agreement, unpaid compensation or withheld awards

How we can help

Combining deep legal knowledge with sharp commercial instincts, our goal is always to deliver clarity, control and legally sound outcomes. Our services include:

  • Settlement agreement drafting and negotiation – Ensuring compliance and minimising exposure.
  • Collective redundancy –Delivering efficient, effective and compliant advice to employers and large groups of staff.
  • Exit strategy planning – Incorporating timescales, messaging, tax and equity implications, and ongoing obligations.
  • Restrictive covenant enforcement and breaches – Enabling a swift response if terms are broken or threatened.
  • Legal compliance – Ensuring any termination of employment is compliant with the very latest employment legislation.
  • Sector-specific guidance – Navigating exits in regulated or reputationally sensitive areas.

Specialists in collective settlement agreements

If you need to make a large number of redundancies in one go, our specialist settlement agreement solicitors can help. Our team has extensive experience in advising large numbers of employees on their individual settlement terms, often completing several hundred settlements in a week.

Employers often refer affected employees to us because our streamlined systems and processes are set-up to achieve a quick turnaround while ensuring every redundant employee is properly advised.

Why choose Clarke Willmott for exits and settlement agreements

  • Large team of employment solicitors with wide-ranging expertise – Overseen by senior partners with over 100 years’ combined experience.
  • Proven expertise – Extensive experience in negotiating and resolving senior exits and complex employment disputes.
  • Creative, commercial and pragmatic advice – Always delivered in plain English.
  • Recognised by The Legal 500 – For the quality of our employment law advice.
  • Cost-effective and outcome-focused – Trusted by employers and senior leaders in many different sectors.
  • Seamless legal support – Full service law firm with specialist solicitors able to advise on corporate and commercial law and managing private wealth.

Recognition for our settlement agreement solicitors

“Clarke Willmott were extremely helpful in assisting us with our case. They tailored our experience and allocated an individual for us to deal with, which really helped. We were able to deal with our case efficiently and effectively and really recommend Clarke Willmott.” Legal 500 2025
“Expert knowledge in all areas of law, experience, accessibility and timeliness in terms of responses.” Legal 500 2025
“Clarke Willmott always provides excellent service, from all members of the employment law team.” Chambers 2025
“Clarke Willmott is able to discuss and plan for complex issues, working together with us for the best outcome.” Chambers 2025

Frequently asked questions on settlement agreements

A settlement agreement is a legally binding contract that typically seeks to end an employer-employee relationship with the waiver of statutory and contractual employment law claims. It is often used when an employee is dismissed or made redundant, but they can be used while an employee is still employed, depending on the circumstances.

Employment law rights are complicated and can only be legally waived in two ways. While an employee can waive their employment rights via ACAS and their ‘COT3’ settlement terms through early conciliation, a settlement agreement is the far more commonly used option.

Yes, for the settlement agreement to be effective, the employee waiving their rights must be independently legally advised on the legal rights they are waiving and, on the terms and effect of the settlement agreement they are entering into. If not, the settlement agreement is not legally binding.

The benefits of a settlement agreement for an employer include:

  1. Saving time and money

Settlement agreements can help employers sidestep lengthy and costly procedures that could tie up internal resources, such as an employment tribunal or court case.

  1. Achieving a clean and final break

When it’s clear that the working relationship is no longer viable, a settlement agreement provides a way to end it amicably and conclusively, reducing the risk of future litigation.

  1. Managing an exit more efficiently

In cases of redundancy or where there are ongoing concerns about an employee’s conduct or capability, a settlement agreement can offer a faster and more discreet alternative to formal disciplinary or redundancy procedures.

  1. Resolving disputes discreetly

If there is a grievance, workplace investigation or the potential for litigation, a settlement agreement can help resolve the matter discreetly without setting a precedent or escalating the dispute.

  1. Providing some certainty

A settlement agreement usually comes with a financial package that can provide immediate financial support and a degree of stability, particularly when leaving a role unexpectedly.

  1. Avoiding more formal procedures

A settlement agreement can provide a way to avoid the stress and uncertainty of disciplinary hearings, redundancy consultations or legal disputes.

  1. Achieving a dignified exit

A settlement agreement can allow the employee to move on without stigma or drawn-out proceedings, often with a reference and confidentiality in place to protect future job prospects.

A settlement agreement can include many things depending on your role, responsibilities, remuneration arrangements and incentives. For example:

  • Pay in lieu of notice (PILON)
  • Bonuses
  • Share options
  • A reference
  • A mutually agreed leaving statement
  • Waivers or amendments to restrictive covenants in your employment contract
  • Protection against derogatory comments
  • Rights to company property e.g. mobile number, company car, laptop etc)
  • Extension of certain benefits after termination such as health cover
  • Outplacement support

Speak to a settlement agreement solicitor

For expert advice on negotiating an exit or settlement terms, call 0800 652 8025 now or complete the form below to speak to one of our specialist solicitors. This consultation is free and you’re under no obligation to do more.

Our employment law team supports businesses and senior executives across the UK and internationally from our offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton.

 

Your key contacts

Marc Long

Head of Employment and HR Team/COFA

Southampton and London
Marc Long is the Head of Clarke Willmott’s Employment and HR team specialising in TUPE and outsourcing.
View profile for Marc Long >

Louise Rogers

Partner

Manchester
Louise is a Partner in Clarke Willmott’s Manchester Employment team and provides employers/HR professionals and senior executives with strategic advice and support in relation to all aspects of employment law.
View profile for Louise Rogers >

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