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Settlement Agreements

Averta has considerable expertise in advising directors and senior executives on settlement agreements (formerly known as Compromise Agreements), particularly where it is necessary to align the settlement agreement with provisions in the Articles, Shareholders’ Agreement or bonus/LTIP rules.

Averta is often invited by companies to advise on settlement agreements for employees which are used in a number of large scale redundancies/re-organisations or site closure exercises.

In these cases we usually liaise with the Employer (or the Employer’s legal advisers) to facilitate the process, whilst remaining independent of the Company and acting in the Employee’s best interests.

There are significant advantages to the employer in using Averta to advise the Employees. Our experience ensures we can offer an efficient and structure or way to handle situations where a large number of Employees have been invited to enter into Settlement Agreements. The Employees receive independent legal advice from Averta in a timely manner, sometimes at the Employee’s place of business, and often over the course one or two days. This has significant cost and logistical advantages.

In these cases Averta will:

i) Take steps to understand the consultation process and the payments involved to the Employee

ii) Agree the Settlement Agreement

iii) Attend the Employer’s premises (if needed) and conduct group meetings with the Employees to explain the issues involved.

iv) Meet each Employee on an individual basis either at the meeting, or by telephone after the meeting

v) Sign off the Settlement Agreements.

Costs are paid by the Employer, and we offer a variety of different cost packages, depending on venue, complexity and number of Employees involved.

Case Study 1

A major technology business proposed to close an office and make its staff redundant. The Employees were offered enhanced redundancy packages in return for entering into a Settlement Agreement. Averta was instructed to advise the Employees (with their consent of course) and liaised with the Company regarding the terms of the Settlement Agreement. Various changes were proposed and agreed. Averta then attended the site for two days to advise the Employees which involved a group meeting, and subsequent one on one meetings with Employees. All the Agreements were signed and the HR Director commented:-

“Thanks once again for all the good work you have done on behalf of all the Employees here. Everyone here has nothing but positive words to say about their help and guidance you and Jon had given them.”

Case Study 2

A similar exercise was conducted in Southampton, where a global electronics company was closing one of its factories. The staff were offered enhanced redundancy packages and as in Case Study 1, Averta agreed to provide independent legal advice to each individual. Group and individual meetings were held as before. However, a number of employees were absent, on leave or extended sickness, so arrangements were made to give each of those telephone advice over the next few weeks, leading to completion of all the Settlement Agreements.

Our expertise includes:

An established reputation

Settlement Agreements

Restrictive Covenants

Compromise agreements

Contractual disputes

Notice and garden leave

Unfair dismissal


Service agreements

Employment contracts

Pay and benefits

Severance agreements

Disciplinary and
grievance procedures

Mobility and relocation


Employment litigation

Consultancy agreements

non-poaching and
non-enticement provisions


Boardroom disputes

Consultancy agreements

Directors’ duties


Capability and performance


Tax on termination payments

Bullying and harrassment

Redundancy schemes


Disputes concerning shares

Share options and bonuses

Court and tribunal litigation

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