Settlement agreements

Settlement agreements are useful tools through which employment relationships and/or disputes can be ended, often with benefits for both the employer and the employee.

The main aims of most settlement agreements are:

  • to provide the employee with sufficient financial and other incentives to walk away from the employment relationship (and/or end an associated legal dispute) and to give up any associated legal rights;
  • to provide the employer with a legally binding settlement to protect it against legal action (or any continued legal action) from the employee.

At Archon, we provide expert advice and assistance to executives in assessing, negotiating and finalising settlement agreements to provide the maximum achievable benefits.

We can help you to assess the strength of your negotiating position, taking into account your contractual and statutory rights, your treatment by the employer and the likely impact of the settlement on your future financial position and your reputation and future employability. In some cases, steps can be taken to improve your negotiating position before entering into further negotiations at a later stage. In other cases, a rapid resolution and exit may be more beneficial.

Many of the settlements on which we advise executives involve complex issues including directors’ duties, regulatory issues, shareholdings, LLP and partnerships agreements, carried interest and co-investment arrangements, LTIP, share option and restricted stock schemes.

We assist with the negotiations themselves, whether behind the scenes or directly with your employer or with their lawyers. Our approach to negotiations is flexible, as no two cases are identical. However, our usual preference is for negotiations which, although they may well be tough, involve both sides maintaining respect for each other.