Settlement agreement templates

Here are 5 different settlement agreement templates (which used to be called compromise agreements) which are all fully up to date and compliant with the Equality Act and all other relevant legislation. Remember that each case is different, so each settlement agreement will tend to be different too. The examples which we have provided below are all different and reflect different types of deal which can be agreed between the employee and the employer.

If you think you have a good case and are considering instructing a lawyer, you can fill in the Case Details Form and we will be in touch. You can also take a look at our Frequently Asked Questions where we answer common questions such as ‘Do I have a case?’, ‘What should I do next?’ and ‘How much will a lawyer cost?’.

a) Standard Settlement Agreement no.1; View template

This is a simple settlement agreement which most people will be absolutely fine with.

b) Standard Settlement Agreement no.2; View template

As above, but a different version.

c) Settlement Agreement with pension; View template

This settlement agreement includes a payment into the employee’s pension fund. Its great for ex gratia payments over £30,000 (which are normally taxable) because payments into pension funds are also tax free. Its really for employees nearing retirement age because younger employees won’t be able to access the pension money for a long time!

d) Settlement Agreement with shares & company car; View template

This settlement agreement would suit a senior executive employee or anyone who has shares which are going to vest and which they want to negotiate as part of their leaving package. And the employer in this example has agreed to include the company car too.

e) Settlement Agreement in two parts for long garden leave or notice period. View template

This is for employees who are going on a long garden leave or working out their notice, rather than finishing work straight away. Essentially you sign the first part when originally agreeing to the deal, and then you sign the second part after you have come to the end of your employment. It is to ensure that there are no breaches during this period. It is fairly complicated however, and we would urge you to seek advice from us about this.


If you are looking for help with drafting your settlement agreement template or with any other employment law query then please do get in touch with us on 020 7717 5259, 0800 533 5134 or by email on [email protected]. We will be more than happy to have a telephone call with you to discuss your requirements, and this initial call will be without cost or obligation to you.