Search

How can we help?

Icon

A guide on redundancy and settlement agreements

This guide will help you navigate the tricky topic of redundancy and settlement agreements, covering what redundancy means for both employers and employees, as well as how settlement agreements work in practice.

Topics covered:

  • What is a redundancy?
  • What rights does an employee have if they are made redundant?
  • What is a settlement agreement?
  • What is a protected conversation?
  • What does with prejudice mean?
  • What are the differences between redundancy and settlement agreements?
  • How is a settlement agreement negotiated?
  • What must an employer include in a settlement agreement?
  • Are payments in settlement agreements taxable?
  • Confidentiality clauses in a settlement agreement include?
  • What are other standard terms found in a settlement agreement?
  • Time an employee should be given to consider a settlement agreement
  • Legal support

How can we help

If you need help with drafting or negotiating a settlement agreement, please contact the employment team on 0118 958 5321.

Author profile

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

Read, listen and watch our latest insights

art
  • 29 July 2026
  • Employment

Employment Rights Act 2025: Key takeaways from the Consultation for Zero Hour Reforms

The government published its consultation on reform of zero hour, low hour and agency worker contracts on 2nd June 2026. The consultation closes on 25 August 2026 and so there is still time to get responses in to help shape the operation of the new provisions in the Employment Rights Act 2025 (the “Act”).

art
  • 27 July 2026
  • Commercial Real Estate

What every business should know about commercial leases

Understand the key commercial lease clauses that can affect your business, including break clauses, security of tenure, repairs, alterations, rent reviews and assignment rights. Learn what tenants and landlords should consider when negotiating lease terms.

art
  • 23 July 2026
  • Immigration

New Priority Service for British citizenship applications: Faster decisions now available

The Home Office has introduced a new Priority Service for British citizenship applications, allowing eligible applicants to receive a decision on their naturalisation or registration application in around 30 working days, rather than waiting the standard processing time of up to six months.

Pub
  • 21 July 2026
  • Corporate and M&A

Quarterly Insights: Key Corporate & Commercial Topics – Q3 2026

Join Stuart Mullins and Jonathan Hayes as they explore the most topical corporate and commercial issues, along with key developments our team has examined over the past three months. In Q3, they discuss CICs, company registers, and the use of NDAs in business sales and exits.

art
  • 20 July 2026
  • Privacy and Data Protection

Personal Data FAQs

Explore comprehensive answers to frequently asked questions about personal data, GDPR compliance, and your rights.

art
  • 16 July 2026
  • Corporate and M&A

EMIs – The basics

Discover the essentials of Enterprise Management Incentives (EMIs), an HMRC-approved employee share scheme offering tax advantages. Learn how EMIs incentivise staff, eligibility requirements, and how Clarkslegal can help tailor a scheme for you.