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    Frequently asked
    questions

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    What is a settlement agreement?

    A settlement agreement is a legally binding document between you and your employer. It sets out the terms of ending your employment and typically includes financial compensation and other agreed terms. Once signed you can’t bring any claims against your employer to an Employment Tribunal. Settlement agreements are designed to ensure both parties part ways on mutually acceptable terms.

    What is included in a settlement agreement?

    The terms are mainly common sense and typically include financial compensation, a waiver of claims against your employer, confidentiality clauses, a reference for future job applications, and terms regarding notice periods and restrictive covenants.

    Are settlement agreements taxable?

    In most cases, the first £30,000 of a settlement payment is tax-free if it is compensation for loss of employment. However, certain payments, such as unpaid wages, holiday pay, and other contractual entitlements, are subject to income tax and National Insurance contributions. We will advise you on the tax implications of your agreement to ensure clarity.

    How much do settlement agreements cost?

    Our settlement agreement service is completely free for employees, as the legal fees are covered by your employer as part of the agreement.

    Why should I instruct Gordon Turner employment lawyers?

    We specialise exclusively in settlement agreements, offering same-day advice and support to ensure a swift and stress-free process. With decades of expertise and a proven track record of assisting employees, we provide clear, practical advice to help you achieve a fair outcome.

    What do you check in a settlement agreement?

    We carefully review all aspects of your settlement agreement. Our aim is to ensure the agreement protects your rights, is fair, and meets your personal and professional needs.

    Are settlement agreements confidential​?

    Yes, settlement agreements typically include a confidentiality clause requiring you to keep the terms of the agreement and the circumstances surrounding your departure private. This is standard practice and is intended to protect both you and your employer. We’ll explain any confidentiality requirements to ensure you fully understand your obligations.