Agreeing a clean exit with a settlement agreement

Sometimes the best outcome for everyone is a fair, agreed parting of ways. We help Sussex and Surrey employers use settlement agreements and protected conversations to resolve difficult situations quickly, confidentially and with certainty on both sides.

A settlement agreement can help when

A working relationship has broken down

You need certainty and confidentiality

You want to avoid a long, contested process

An exit needs to be handled sensitively

25+ Years Experience

Discreet & Confidential

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Supporting Sussex, Surrey & London

When a fair, agreed exit is better than a drawn-out process

A settlement agreement is a legally binding agreement in which an employee agrees not to bring certain claims against you, usually in return for an agreed payment and terms. It’s a powerful way to bring certainty to a difficult situation — whether that’s a performance issue, a breakdown in the working relationship, or an exit that simply needs to be handled discreetly.

Many SME owners don’t realise this is an option, or aren’t sure how to raise it without making things worse. The good news is that, handled correctly, a “protected conversation” lets you explore an agreed exit without it being used against you later.

That’s where MJV Consulting comes in. We advise on when a settlement agreement is the right route, how to open the conversation, and manage the process from first approach to signed agreement.

Certainty, speed and confidentiality — on both sides

The alternative to an agreed exit is often a lengthy formal process with an uncertain outcome. A well-handled settlement agreement replaces that with certainty: the employee waives their claims, both sides get a clean break, and the terms — including confidentiality and an agreed reference — are settled clearly in writing.

Handled well, it protects the dignity of the working relationship and your business’s reputation. Because the approach needs to be legally sound to be effective, having it managed properly is what makes the difference.

Our four-stage approach
to a settlement agreement

ADVISE

Advise on the route

We assess whether a settlement agreement is the right approach, weigh it against a formal process, and help you understand the likely cost and outcome.

APPROACH

Open the conversation

We prepare you for a “protected conversation”, including what you can and can’t say, so the approach is handled sensitively and without creating risk.

NEGOTIATE

Agree the terms

We help you shape a fair package — payment, notice, reference and confidentiality — and manage the negotiation to a sensible landing point.

COMPLETE

Finalise the agreement

We coordinate the paperwork through to signing, including the employee’s independent legal advice, so the agreement is valid and binding.

What a well-handled settlement involves

The framework we work through with every client — and the
version we’re happy to talk through on a free discovery call.

Before You Approach

During Negotiation

To Make It Binding

Discreet, experienced support when it matters most

We handle sensitive exits with the care, confidentiality and commercial judgement they need.

✓ Honest advice on whether a settlement is the right call

✓ Expert handling of protected and “without prejudice” conversations

✓ Fair, realistic package guidance based on your situation

✓ Full coordination through to a signed, binding agreement

✓ Complete discretion and confidentiality throughout

✓ Trusted by businesses across Sussex, Surrey and London

FAQs

What is a settlement agreement?

A settlement agreement is a legally binding agreement under which an employee agrees to waive their right to bring certain claims, usually in return for an agreed payment and terms. It gives both sides certainty and a clean break. We’ll help you decide whether one is appropriate and get the terms right.

Yes — for a settlement agreement to be valid, the employee must receive independent legal advice on its terms and effect from a qualified adviser. Employers usually contribute to the cost of that advice. It’s a required safeguard rather than an obstacle, and it’s part of what makes the agreement final and secure for you.

They’re often used where an employment relationship is ending and both sides would prefer certainty to a drawn-out process — for example around a disputed exit, a redundancy, or a performance situation. It’s always voluntary; an employee can’t be forced to sign. We’ll advise honestly on whether it’s the best route for your situation.

The law lets employers have an off-the-record conversation with an employee about ending employment on agreed terms, which generally can’t be used as evidence in an ordinary unfair dismissal claim. There are limits — it doesn’t cover discrimination claims, for instance — so it needs handling correctly. We’ll help you open the conversation the right way.

Typical terms cover the payment, the leaving date, confidentiality, an agreed reference and how the departure will be described. A well-drafted agreement removes ambiguity so everyone knows where they stand. We’ll make sure it’s clear, fair and covers the things that matter to your business.

Genuine termination payments can currently be paid free of tax up to £30,000, but not everything falls within that — contractual payments such as notice pay are normally taxable in the usual way. Getting the treatment right matters for both sides. We’ll help structure the agreement correctly and flag where specialist tax advice is worth taking.

Once both sides are broadly agreed, a settlement agreement can often be finalised within a couple of weeks — far quicker than a contested formal process. That speed and certainty is a large part of the appeal. We’ll manage the drafting and back-and-forth so it moves along smoothly.

There’s no set formula — it usually reflects notice owed, any statutory redundancy entitlement, accrued holiday, and an additional sum to reflect the value of a clean, agreed exit. What’s reasonable depends on the circumstances and how close you are to a fair outcome by other means. We’ll help you land on a figure that’s fair to the employee and sensible for the business.

Both are legally binding ways to settle and prevent future claims. A settlement agreement is drawn up directly between you and the employee, who must take independent legal advice; a COT3 is settled through ACAS and doesn’t require that separate advice. Which suits you depends on the situation, and we’ll advise on the most straightforward route.

That’s precisely the reassurance a properly drafted settlement agreement gives you — in signing, the employee waives the specified claims, so the matter is closed. That certainty is a large part of why employers use them. We’ll make sure the agreement is drafted so it does the job it’s meant to.

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