Settlement Agreements

Settlement agreements – advice for employers

When an employment relationship breaks down, matters can escalate quickly – disrupting teams, draining management time and exposing your business to cost, reputational harm and legal risk. A well-handled settlement agreement can be a practical way to bring certainty to the situation, protect your commercial interests and enable everyone to move on with dignity.

At Coodes, we advise employers of all kinds across the West Country – from hospitality and tourism-based businesses to manufacturing, services and rural industries – on the strategy, drafting and negotiation of settlement agreements. Whether you’re dealing with senior exits, performance concerns, workplace conflict, redundancy or a discreet parting of ways, we can help you achieve an outcome that is compliant, commercially sensible and proportionate to the circumstances.

How we help

Our employment team supports employers by:

• Drafting and reviewing settlement agreements, ensuring clear and enforceable terms.
• Advising on the process and without-prejudice or protected conversations, so that negotiations are conducted appropriately and risk is minimised.
• Calculating and structuring payments, including notice, holiday pay, compensation, tax treatment and timing.
• Negotiating key protections, such as confidentiality, non-disparagement, restrictive covenants, return of property and data safeguards.
• Managing practicalities, including agreed references, announcements to staff and handover arrangements.
• Reducing future exposure by addressing potential claims and ensuring the agreement achieves a clean break wherever possible.

Why settlement agreements matter to employers

In a region known for strong local networks and reputation-led trading – from tourism and leisure to professional services, agriculture, manufacturing and the marine sector – the way an exit is handled can have a lasting impact. A robust settlement agreement will help you control risk, preserve goodwill and protect relationships with clients, suppliers and the wider community. It can also support recruitment and retention by demonstrating fair, consistent employment practices.

If you need swift, pragmatic advice on a proposed exit, we are here to help you resolve matters and move forward with confidence.

We have prepared a detailed guide for employers in the South West negotiating settlement agreements. It outlines some of the legal requirements, highlights some of the common pitfalls, and provides a practical roadmap for planning and executing a such agreements. However, we strongly advise you to take legal advice as early as possible and to carefully document all discussions and decisions throughout the process.

Related topics:

• Unfair dismissal
• Contracts of employment
• Redundancy and restructuring
• Whistleblowing