Settlement Agreements and Protected Conversations

Settlement agreements offer a clean break for employers when it's time to part ways. Protected conversations give you the space to talk about exit terms without the fear of a Tribunal claim for unfair dismissal. When agreed, a compliant settlement agreement waives employment claims in exchange for consideration. We guide you through every stage confidently, lawfully, and with the right protection in place.

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Grey image placeholder with image icon centralised

Preparing protection conversations

We provide scripts and manager briefings so your oof-the-record dconversations stay within the law. We’ll help you meet the rules under section 111A of the Employment Rights Act and avoid crossing the line into improper behaviour.

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Strategy, risk, and timing

We’ll help you time your approach, understand the risks, and plan around any ongoing processes like redundancy, capability, or discipline. You’ll get advice grounded in the ACAS Code and tailored to your situation.

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Drafting of clear, enforceable agreements

We write robust agreements that clearly define which claims are waived. We’ll also cover confidentiality, non-disparagement, return of property and any post-employment restrictions you need.

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Structuring tax-efficient payments

Making sure termination payments are set up in a way that’s tax-efficient and legally sound is vital. We can structure these for you, including indemnities to protect you from HMRC challenges down the line.

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Handling negotiations and commercial advice

Whether you need a quick resolution or a firm stance, we’ve got the experience to help. We can liaise with employee representatives, manage counteroffers, and guide you on realistic settlement outcomes and tactics.

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Execution and independent advice

Coordinate the signing process, making sure the employee gets valid legal advice. We also ensure the certificate is properly completed so the agreement holds up.

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Questions we’re often asked

What is a settlement agreement?

It’s a legally binding contract that resolves employment claims, usually in exchange for a financial settlement.

What’s a protected conversation?

It’s a confidential discussion about ending employment. If done properly, it can’t be used in a normal unfair dismissal claim.

Are settlement payments tax-free?

Yes, in many cases. Up to £30,000 of genuine termination pay can be tax-free, but it depends on the circumstances and conditions can apply.

Do employees need independent legal advice?

Yes. For the agreement to be valid, the employee must get independent legal advice and a signed certificate.

Can protected conversations cover discrimination claims?

No. Protected conversations don’t apply to discrimination or automatic unfair dismissal, but without-prejudice rules might.

How long does the process take?

Usually between one to three weeks, depending on how straightforward the negotiation is.

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Euan Lawrence was fantastic; he was efficient, understanding, and very clear in his communication on points of law. He actively listened and gave brilliant professional advice. The administrative team that supported and worked with him was equally helpful and efficient.
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Trusted by organisations, families and professionals across the UK
Euan made himself available and kept me informed of timelines and progress. I was not rushed or interrupted.
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Trusted by organisations, families and professionals across the UK
The key thing for me was the empathy and emotional intelligence that Euan Lawrence demonstrated. He was patient, actively listened, and explained points of law to me in a simple yet not condescending manner. I was referred to him by another colleague who had gone through the same process.
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Excellent real-world and experienced knowledge, very clear communication, and transparent billing.
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Trusted by organisations, families and professionals across the UK
Euan Lawrence is expert in the field of employment law.
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I feel the approach from all the staff at Blacks has been first class. David Ward has carefully guided me through the process and often picks up the phone for a chat to offer advice on things to do and things to avoid.
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A very friendly and approachable law firm. All the way through, the whole team at Blacks has been extremely supportive, providing excellent advice and support.
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The team has a wide range of knowledge and skills. My case required senior partners to apprentice-level support. Everyone I met and had contact with was kind, professional, and personable. It felt amazing to have such an awesome team in my corner, showing support and wishing me luck with my case.
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Paul Kelly is knowledgeable, action-focused, and has taken the time to learn about us and our sector. He is a great sounding board.
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I find the team to be really responsive and helpful, providing excellent advice and support at all times. Nothing has been too much trouble, and we have really valued their support.
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