Template letters for settlement agreement negotiations

Free Template Letters and Examples

The legal letter templates and example documents are listed below for you to adapt for use in your dispute with your UK employer. Just click on the sub-heading to view a list of the specific type of templates required.

When completed correctly, these letters will lead your employer to think that you have hired lawyers, which of course makes it much easier to obtain a negotiated exit package called a settlement agreement or compromise agreement. Select the type of template you require by clicking on the buttons below, or scroll down to browse the full list.

Grievance Letter

These free grievance letter template examples will really help you to secure the settlement agreement deal which you are hoping for. Currently we have five different grievance letter templates and examples, and they are explained below. You can chop and change them to suit your case.

Negotiation Letters

These without prejudice letter templates should help you to secure the settlement agreement deal which you deserve. There are three different without prejudice letter template examples, and they are explained below. You can chop and change them to suit your case.

Tribunal claim

These templates are the details of claims for the ’ET1′ employment tribunals claim forms. So when you want to issue a claim in the employment tribunal, you need to fill out an ET1 form. Most people just fill in the details on the form itself, but lawyers and other people in the know actually use a separate document to set out the claim details. This is technically known as a ‘particulars of claim’ document.


Here are different settlement agreement templates (which used to be called compromise agreements), and between them you should have plenty to go on. They are all fully up to date as of 2013, and compliant with the Equality Act and all other relevant legislation.


These free grievance letter template examples will really help you to secure the settlement agreement deal which you are hoping for. We have a range of different grievance letter templates and examples, and they are all explained below. You can edit the letters to suit your particular case.

Grievance Letter: Suspended, Back Injury & Equal Pay

Here the client has originally taken time off work with a bad back, actually caused by working too many hours. Rather than help him, they move him to an inferior role with less responsibility. He then finds out that he is being paid less than some female counterparts. When he flags this up, he is suspended for breaching confidentiality! This template grievance also comes with a without prejudice letter setting out how much money the employee is asking for and why.

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Grievance Letter: Bullied & Discriminated Against for Depression

The client was suffering from depression, and rather than try to help, his employer decided to try to make working life hell for him. This grievance also includes a ‘without prejudice’ section letter setting out amounts of money for settlement negotiations.

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Grievance Letter: Salesperson With Commission Cut

In this example, an English sales manager within an American software sales company has had his commission structure completely changed without any discussion. Technically, possible claims here include breach of contract, constructive dismissal & nationality discrimination. With the help of this grievance he managed to negotiate a very favourable exit package, and he even had a job lined up to go to.

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Grievance Letter: Redundancy Appeal for Pre-determined Consultation

A grievance appeal concerning a redundancy situation whereby our client was singled out unfairly. The process was predetermined, the consultation was inadequate and a colleague was unofficially given the nod to take over the job when our client was going to be ‘made redundant’.

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Grievance Letter: Executive Demoted & Benefits Changed

This example carries on from the template above whereby the Director was forced to resign. The employer responded with a grievance outcome letter, and this was the grievance appeal letter submitted by the employee. Again it was a very successful outcome.

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Grievance Letter: Off Sick With Depression & Not Given a Payrise

This example concerns an employee from a large telecoms company who was on long term sick with depression. Whilst off sick she found that she was passed over for a pay rise. This grievance letter resulted in a decent payout for her.

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Grievance Letter: Made Redundant After Making Complaint

In this example, the employer was a bank and the employee was made redundant very quickly after reporting her line manager for entertaining clients in strip clubs. It looked too much like a coincidence, and when we started asking searching questions in this grievance letter about the redundancy procedure, the bank eventually gave a good settlement agreement, having originally been talking very tough through its in-house lawyer. Possible claims here include unfair dismissal and sex discrimination.

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Grievance Letter: Constructive Dismissal after TUPE Transfer

This grievance letter example features an employee with 12 years of loyal service who’s employer merged with another company in a Tupe transfer. He was then sent rude emails, bullied, threatened with a PIP (performance improvement plan) and effectively demoted by having his responsibilities changed. The aim was to force him to resign by ‘managing him out’. Here were wrote an open letter for him to be treated as a grievance and pointing out that this treatment amounted to constructive dismissal.

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Grievance Letter: Redundancy Whilst on Maternity Leave

This grievance letter example is from a case whereby our client was managing a UK branch of an international company, and then when she went off on maternity leave she was made redundant. This was tantamount to unfair dismissal, and we wrote to the employer pointing out the faults in their redundancy process.

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Grievance Letter: Flexible Working Discrimination

In this grievance letter our client was a high powered banker who put in a request for flexible working to look after her daughter. After starting to work from home, her line manager began ostracising her to the point whereby she had no choice but to negotiate a settlement agreement to leave with her head held high.

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Learn how to negotiate a settlement agreement (aka compromise agreement), by browsing our advice articles and template letter examples. These free resources will help you to negotiate your compromise agreement deal. Of course if you want the professionals to negotiate for you then you've come to the right place too.

Without Prejudice Letter: Unpaid Commission and Bonus

This template is great to send to your employer when they owe you specific sums of money, such as commission payments or bonus payments, which you can identify in a list. To help focus their minds, why not attach a draft ‘ET1′ employment tribunal claim form – not only does this help to make it more real for them, but it is also useful preparation for you, as you may need to issue a claim if this letter doesn’t produce results.

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Without Prejudice Letter: Sham Redundancy Selection

This without prejudice letter template is a polite yet firm letter which was used in a case of constructive dismissal and disability discrimination, prior to the issue of employment tribunal proceedings. It is often good to try to prevent claims before they start, with the suggestion of a reasonable out of court settlement. Possible claims here include constructive dismissal, whistleblowing and disability discrimination.

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Without Prejudice Letter: Tax Savings for Out of Court Settlements

With this without prejudice letter template you can be speaking their language and explaining to the employer why they would make significant tax savings themselves just by agreeing to your without prejudice offer and signing a settlement agreement with you.

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Without Prejudice Letter: Sham Redundancy – Bullying & Stress

This without prejudice letter template concerns an employee who is being made redundant when there is no real decrease in his workload. He had previous complained of bullying and harassment and then singled out for redundancy, when in fact his employer wanted to unfairly dismiss him.

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Without Prejudice Letter: Made Redundant on Maternity Leave

This without prejudice letter was written by us for a client who was told that she was being made redundant whilst she was on maternity leave (an all too common occurrence unfortunately). The employer tried to misrepresent her job role, saying that she was admin support, whereas in fact her appraisals showed that her role was more managerial. Furthermore she was not put in a pool with other employees, or offered meaningful alternative employment.

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Without Prejudice Letter: Dismissed, Reinstated on Appeal and Resigned

This without prejudice letter template was sent by us for our client who was suspended pending a disciplinary investigation, and then dismissed. He was reinstated when he appealed the disciplinary decision, but then he resigned and issued a claim in the Employment Tribunal for constructive dismissal, on the basis that the employer’s conduct of the disciplinary process was enough to breach the duty of mutual trust and confidence.

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Without Prejudice Letter: Requesting Release from Restrictive Covenants After Whistleblowing

In this without prejudice letter, the background is that our client below the whistle on fraud which he discovered, and an investigation commenced. Meanwhile he was offered a settlement agreement of 2 months’ ex gratia pay. In this letter he responds with an offer to accept 8 months’ pay and also writes about the restrictive covenants in his contract of employment, which are too wide. He asks to be released from several of these restrictive covenants, and to have others narrowed in effect.

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Without Prejudice Letter: Off Sick With Stress After Bullying

In this without prejudice letter, the background is that client was subjected to bullying by her line manager and adverse comments made both in the office and on Facebook. This, combined with an increased workload, lead her to be signed off sick with stress. She now makes the first move to request an exit with a settlement agreement, asking for an ex gratia payment of 6 months’ salary, but contractual benefits such as notice pay.

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Without Prejudice Letter: Whistleblowing & Disability Discrimination

This ‘without prejudice’ letter is from a whistleblowing case whereby the two employees have blown the whistle on corruption and/or malpractice within the employer. They were then subjected to a campaign of detriments and victimisation as a result. Here we write to their employer, setting out the merits of their case, and asking for a favourable settlement agreement exit package.

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Without Prejudice Letter: TUPE, Redundancy and Corporate Takeover

In this free without prejudice letter example, our client was employed with great success for 8 years, but then his company was taken over by a large corporation. Shortly after that he was ‘made redundant’, although of course this was tantamount to unfair dismissal, and he should have been protected by the ‘TUPE‘ legislation. Here we write to the employer asking for a settlement agreement exit package.

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Settlement Agreements

We are specialists at reviewing and advising upon settlement agreements, whether you just want yours signed off, whether you'd like the terms negotiated (including perhaps an increase of the settlement money) or whether you just want to know if you're getting a good deal.
 Below are some articles we’ve written about settlement agreements generally, for your information.

Grievance Letter: Appeal in Response to the Grievance Outcome Letter

An example of an appeal used to answer the employer's response to the original grievance in a case where the employee was forced to resign.

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Settlement Agreement Template: Standard Version 1

This is a simple settlement agreement which most people will be absolutely fine with. It covers many standard terms.

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Settlement Agreement Template: Standard Version 2

This is very similar the Version 1 standard settlement agreement template, but just a different version, so you can pick and choose elements from each if you so wish.

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Settlement Agreement Template: Inc. Pension Payment

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. It's really for employees nearing retirement age because younger employees won’t be able to access the pension money for a long time!

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Settlement Agreement Template: Inc. Shares and Company Car

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 for good measure the employer in this example has agreed to chuck in the company car too. We only had to twist their arm a little bit for this, as they had behaved very badly!

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Get prepared to lodge an official claim by browsing our advice articles and template form examples. These free resources will help you to lodge a Tribunal claim. Employment Tribunals are the last resort in your arsenal of getting a fair deal. Whilst the case rumbles on in court, however, you can still continue to negotiate with your employer.

ET1 Claim Form: Details of Claim for Race Discrimination and Withholding Commissions

This employee was of Arabic descent and was fired from a big recruitment company ostensibly because he was having an affair with a client but in reality it was just so his boss could take the credit for all his commissions!

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ET1 Claim Form: Withholding Commissions

This employee of an events management company left her job voluntarily and then the employer decided to try to withhold her commissions. We got them back for her in the end though.

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ET1 Claim Form: Sales Commission Structure Changed After Developing Depression

In this employment tribunal claim form template example, the employee went off work with depression for a few weeks. When he returned, he was horrified too discover that the company had completely changed his commission structure. As a salesman, this impacted his take home pay. When he flagged this up, they denied that it was done deliberately, so ultimately he had to issue this claim for disability discrimination (for damages to injury to feelings) and also breach of contract / unlawful deduction of wages (for the commissions lost). Furthermore he felt he had no choice but to resign, so he has claimed for constructive dismissal as well. And, for good measure, for written statement of employment particulars (not issuing him a contract of employment).

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ET1 Claim Form: Unfair Redundancy and Equal Pay Claim

This employee was selected for redundancy when in fact this was just a way of getting rid of her. She also found out that she had been getting paid less than an equivalent male colleague, hence the equal pay claim.

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