Settlement Agreements
Been Offered a Settlement Agreement?
A settlement agreement - sometimes called an exit agreement, severance agreement or compromise agreement - usually means your employer wants your departure signed off cleanly. In exchange for a payment, you waive your right to bring claims. Once signed, that waiver is generally final - which is exactly why you should never sign one without independent legal advice, and why employers commonly contribute to the cost of that advice.
Before you sign, we make sure of the following:
- The financial package properly reflects the strength of the claims you are giving up
- The payment is structured tax-efficiently, using the exemptions available on termination payments
- Notice, holidays, bonuses, commission and pension contributions are all accounted for
- References, confidentiality and non-disparagement terms work for you, not just your employer
- Restrictive covenants do not unreasonably limit your next role
Under pressure to sign by a deadline? Do not sign - short deadlines are a negotiation tactic, and advice at this stage typically costs your employer, not you.
Can the Offer Be Improved?
Often, yes. The first offer is rarely the final one, particularly where you have potential claims your employer would prefer never reach the WRC. We review the agreement, value your position honestly, and negotiate where there is room - and where the offer is already fair, we tell you that straight, so you can sign with confidence.
Settlement Agreement Solicitor
Expert legal advice on settlement agreements under Irish employment law.
Whether you’re an employer looking to negotiate an exit or an employee who’s been offered a settlement, our Dublin-based employment solicitors ensure you understand your rights and get the best possible outcome.
A settlement agreement is a legally binding contract between an employer and employee that typically ends the employment relationship on agreed terms.
Getting independent legal advice before signing is essential, once signed, you generally waive your right to bring any future claims.
Our Process
1. Review the Offer
We examine the terms of the proposed settlement in detail, the financial package, any restrictive covenants, confidentiality clauses, and what claims you’re being asked to waive.
2. Assess Your Position
Before accepting anything, we advise on the strength of any potential claims you may have and what a realistic outcome at the WRC or Labour Court might look like. This gives you a clear picture of your leverage.
3. Negotiate Better Terms
Most initial offers can be improved. We negotiate on your behalf to secure a better financial package, more favourable references, extended benefits, or amended restrictive clauses.
4. Finalise the Agreement
Once terms are agreed, we ensure the final document protects your interests, complies with all legal requirements, and leaves no loose ends.
Evaluate & Improvement
Settlement agreements are commonly used where an employer wants to end the employment relationship cleanly, avoiding the risk and cost of a WRC or Labour Court hearing.
For employees, they can offer a faster, more certain outcome than pursuing a formal claim. However, the terms of the initial offer rarely reflect the best outcome available.
For employers, a well-drafted settlement agreement provides certainty and closure. It eliminates the risk of future claims and protects commercially sensitive information through confidentiality and non-compete clauses.
We advise employers on structuring agreements that are legally robust while remaining commercially practical.
FOR EMPLOYEES
Independent legal review of the offer, assessment of your potential claims, and expert negotiation to improve the financial package and terms before you sign.
FOR EMPLOYERS
Drafting and negotiating settlement agreements that provide certainty, protect your business, and minimise the risk of future claims.
WHAT'S AT STAKE
Once signed, you generally waive the right to bring claims. Independent legal advice ensures you understand exactly what you're agreeing to.
Frequently Asked Questions
What Is a Settlement Agreement?
- A legally binding contract ending the employment relationship on agreed terms
- Typically includes a financial payment, reference, and confidentiality obligations
- The employee usually waives the right to bring future claims
- Independent legal advice is essential before signing
What Should You Look For?
- The financial package, is it fair given your service, salary, and potential claims?
- Restrictive covenants, non-compete and non-solicitation clauses and their scope
- Confidentiality obligations — what you can and cannot say after leaving
- Tax treatment — how the payment is structured and what’s taxable
Negotiating a Better Deal
- Initial offers are rarely the best outcome available
- The strength of your potential claims directly affects your leverage
- Notice periods, bonuses, pension contributions, and benefits can all be negotiated
- A well-negotiated agreement can significantly exceed the initial offer
Finalising and Signing
- The agreement must be reviewed by an independent solicitor
- All terms should be clearly documented with no ambiguity
- Ensure the agreed reference wording is included in the final document
- Once signed, the agreement is binding on both parties
Do You Have a Case?
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Employee Services
Request A Consultation
Straight answers, in three steps
Most people have never needed a solicitor before. Here is exactly what happens when you contact us.
Tell Us What Happened
Send the form or call us. We listen, ask the right questions, and give you a straight answer on whether you have a case worth pursuing.
Agree The Plan Of Action
We set out exactly how your case will run and what to expect at each stage, all agreed in writing before anything begins. WRC claims usually must be lodged within six months, so we move quickly.
We Pursue Your Claim
Negotiation first, then the WRC, Labour Court or civil courts if needed. Most of our clients settle without ever facing a hearing.