Settlement Agreement

Protecting your business with settlement agreements

When managing sensitive or complex employee exits, it’s important to protect your business while treating people fairly. A well-managed Settlement Agreement can help you achieve both – offering closure for the employee and peace of mind for the employer.

At vivoHR, we support you in understanding when a Settlement Agreement is appropriate and how to handle it in a way that feels fair, clear, and professional. We’ll work closely with you, and your legal adviser, to ensure the process runs smoothly and with minimal disruption.

If you’re facing a challenging situation and think a Settlement Agreement could help, talk to us – we’re here to guide you through it.

Why choose vivoHR?

With a proactive and experienced team, vivoHR provides clear, practical, and commercially focused HR support. Whether remotely or on-site, we help businesses utilise settlement agreements effectively while ensuring fairness, compliance, and risk mitigation.

settlement agreements

How vivoHR can support your business

Settlement Agreements can be a useful tool in managing employee exits smoothly and fairly. At vivoHR, we provide straightforward, practical support to help you handle the process with confidence and care.

We can help with …

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Understanding if a Settlement Agreement is the right option

We’ll talk through your situation and help you decide if a Settlement Agreement is the most appropriate route forward.
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Preparing and reviewing the agreement

We’ll support you with the key elements – reviewing wording, offering clarity, and working alongside your legal adviser as needed to ensure everything is in good order.

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Supporting conversations with employees

We can help you plan how to communicate the agreement clearly and constructively, so discussions are handled with professionalism and empathy.

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Staying compliant

We’ll keep you on the right track with what’s expected – like making sure the employee gets independent legal advice and helping you meet other statutory requirements.

Why you might need a Settlement Agreement in place

While many employment situations are often straightforward, certain scenarios make a Settlement Agreement a valuable option, such as:

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High-risk redundancies

Where an employee may dispute the redundancy process or selection criteria

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Performance or conduct concerns

If underlying performance or disciplinary issues could lead to further disputes

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Discrimination or unfair dismissal risks

Where there is potential for claims based on discrimination, unfair dismissal, or whistleblowing

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Senior or long-serving employees

Ensuring a dignified and amicable departure while protecting business interests

Settlement Agreement FAQS

What is a Settlement Agreement?

A Settlement Agreement is a legally binding contract between an employer and an employee that sets out the terms on which an employment relationship will end. One of its key benefits is that it includes a waiver of the employee’s right to bring an employment tribunal claim against the employer, providing much-needed certainty and protection for businesses.

These agreements are particularly useful in dispute situations or where employers wish to mitigate potential risks associated with trickier employment relations  processes.

Can an employee negotiate the terms of a Settlement Agreement?

Yes, employees are entitled to negotiate the terms of a Settlement Agreement. This is why it is a legal requirement for them to seek independent legal advice before signing. vivoHR can guide employers on how to approach negotiations to achieve a fair outcome that protects business interests.

What happens if an employee refuses to sign a Settlement Agreement?

An employee is under no obligation to sign a Settlement Agreement. If they choose not to, the employer must proceed with any other necessary and appropriate employment process in accordance with employment law. vivoHR can help employers manage these situations carefully to avoid unnecessary disputes and ensure compliance.

What’s the cost for pay-as-you-go hr support?

Pay-as-you-go support is £120 + VAT per hour. Great for one-off help without a subscription.

What’s the price for phone and email support?

Phone and email support starts from £100 + VAT – ideal for day-to-day questions or quick advice.

Do you offer monthly HR support packages, and what do they cost?

Yes – our monthly retainers start from £217 + VAT. These give you ongoing support with the flexibility of a monthly plan.

Major Employment Law Changes in 2026 - Employment Rights Act 2025

Whether you are managing absence, performance, disciplinary action, contracts, or workplace policies, it’s essential to ensure your approach reflects the latest legal requirements. Keeping your HR practices aligned with current legislation helps reduce risk, maintain compliance, and support fair treatment across your organisation.

The Employment Rights Act 2025 introduces significant changes that now affect employers across the UK. All businesses should review their policies and procedures to ensure they remain compliant and up to date.

Let’s Get Started

Contact us today for a free consultation and discover how our clear and practical HR solutions can help your business achieve compliance with effective Settlement Agreements.

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adrian hall profile picture
adrian hall
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I would highly recommend speaking with Vivo HR. We chose them three years ago based on a trusted partner's recommendation, and it has proved to be a good decision. As an SME, maintaining best practice and compliance with rapid changes in HR is tough, but their pragmatic, straightforward, and transparent advice makes it much easier. They provide excellent, reliable support in a very challenging business environment.
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Fiona Thorpe profile picture
Fiona Thorpe
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We've used vivoHR as our HR consultants for several years now, working with Sarah-Louise on a number of issues over that time. Originally through personal recommendation, the service offered is very professional and comes with knowledge, experience and patience(!) I'm more than happy to highly recommend them.
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Natasha Parkin profile picture
Natasha Parkin
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Sam provided our managers at Clarke and Son Solicitors with Performance Management Training at the end of April. Her half day session was informative and engaging, balancing management theory with practical tasks to help upskill the team. Given the upcoming changes to employment legislation I felt our managers left the training fully equipped to manage performance across their teams with more confidence. Thanks Sam, it was a pleasure to have you help us.
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louisecfc
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We’ve had a great experience working with vivoHR. They’ve been a real support in helping us stay up to date with employment regulations and making sure we remain compliant. They are also always there when we need a second opinion or just a quick sanity check. What really stands out is how they explain everything. No jargon, no overcomplicating things - just clear, straightforward advice that is easy to understand and act on. Running a business comes with enough to think about, so having that level of support and clarity makes a big difference. Would happily recommend to any business owner who wants peace of mind around HR.
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Emma Lawrence profile picture
Emma Lawrence
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Sam, Rachel and the team at VivoHR have provided us an excellent and professional service.
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Rachel Harris profile picture
Rachel Harris
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I asked Sarah-Louise from VivoHR to speak about the new Employment Rights Act for an event with local business owners. She was excellent. Her friendly and approachable style meant that, what can be a dry subject, became an engaging, useful summary of essential actions. I will definitely ask her to speak again at more of our events. Her expertise in HR shone through. Thank you again Sarah-Louise for your time and support.
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Patrick Kelly-Weller
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Sarah-Louise and the team at VivoHR exemplify how top level HR support looks & feels. If you’re looking for HR support & are considering Vivo, I highly recommend them.
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David Payne profile picture
David Payne
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Excellent talk by Sarah-Lpuise on the new Employment Rights Act. First rate. Thx David