Settlement Agreements in Scotland

A settlement agreement can be a helpful way to end an employment relationship on agreed terms, but it’s essential to understand your rights before signing. At Pomphreys Solicitors in Wishaw, we help employees across Scotland review, negotiate and sign settlement agreements with confidence and clarity.

What Is a Settlement Agreement?

A settlement agreement is a legally binding contract between an employer and employee, usually offered when the employment relationship is ending or there is a risk of dispute. In exchange for agreeing not to bring specific legal claims (such as unfair dismissal or discrimination), the employee receives a financial settlement and often other benefits, including a reference or a confidentiality agreement.

For the agreement to be legally valid, the employee must receive independent legal advice before signing—this is where we come in.

Settlement agreements are commonly used in situations such as:

Redundancies (individual or collective)
Disciplinary issues or grievances
Long-term illness or capability procedures
Relationship breakdowns with management
Workplace restructures or exits by mutual agreement

How We Help You Understand and Protect Your Position

It’s easy to feel rushed or unsure when presented with a settlement agreement, especially if it’s unexpected. Our job is to ensure that you fully understand what you’re agreeing to and whether the terms reflect a fair outcome for your circumstances.

At Pomphreys, we offer a supportive, confidential and efficient service that includes:

Reviewing your agreement clause by clause
Explaining the meaning and effect of legal terms
Advising on your rights and whether you’re being asked to give up anything unusual
Identifying risks, such as post-employment restrictions or waiving claims unfairly
Negotiating improvements—financial, reputational or practical—where appropriate
Signing the solicitor’s certificate required to complete the agreement

We often work to tight deadlines, and in many cases, our legal fees are paid in full by your employer.

Why It’s Important to Get Advice from the Right Solicitor

The law requires that you receive independent legal advice before a settlement agreement is valid. This isn’t just a tick-box formality—it’s your opportunity to ensure the agreement works for you.

Even if the deal looks straightforward, there may be clauses you’ve overlooked or could negotiate more effectively, such as:

The tax treatment of your payment
Whether legal costs are covered
What reference your employer will provide
Restrictions on future employment or statements
Confidentiality terms and non-disparagement clauses

We’ll provide honest advice. Sometimes, that means recommending that you sign; sometimes, we’ll advise against it; and sometimes, we’ll suggest changes. Whatever the case, we’ll be clear, calm and on your side.

A Fast and Supportive Service When You Need It Most

We understand that settlement agreements often come with time pressure, especially in redundancy or performance-related exits. We’ll make every effort to accommodate urgent matters, and we can usually review your agreement and meet with you—remotely or in person—within 24 to 48 hours.
Whether you’re parting ways amicably or under challenging circumstances, we’ll ensure that the final agreement accurately reflects your contributions and protects your future.

Why Choose Pomphreys Solicitors?

At Pomphreys, we’ve helped hundreds of employees in Wishaw, Lanarkshire and across Scotland deal with settlement agreements in all types of roles and industries. Clients trust us because:

✅ We explain things clearly and without jargon
✅ We offer fast turnaround with minimal fuss
✅ We’re thorough and don’t miss the details that matter
✅ We’re approachable, discreet and experienced

You’re not just signing a form, you’re closing a chapter. Let us help you do it on your terms.

Get the Advice You Need Before You Sign

If you’ve been offered a settlement agreement, speak to Pomphreys Solicitors before you sign anything. We’ll explain your rights, clarify the terms, and make sure the agreement works in your favour. Contact us today to schedule a fast and confidential review, often with fees covered by your employer.

You might also be interested in:

Unfair Dismissal – if you’ve been dismissed and unsure whether it was fair
Redundancy – if the agreement is part of a redundancy situation
Wills and Estate Planning – if your change in circumstances affects long-term plans