A settlement agreement is a legally binding contract between you and your employer whereby you agree to give up any rights you may have to bring certain legal claims against your employer in exchange for a settlement payment.

It is crucial to take independent legal advice before entering into a settlement agreement and your employer will likely require the agreement to be signed by your professional adviser before it becomes legally binding.

For most claims, there is a strict time limit of 3 months less 1 day from the date of the act complained of (which, for example, could be the last date of your employment or the date of an act of discrimination).

Some claims, such as statutory redundancy pay claims or equal pay claims have a longer time limit of 6 months less 1 day.

You must tell Acas first before making a claim to an employment tribunal. Acas will offer what is called ‘early conciliation’ which will “stop the clock” on the time limit for bringing a claim for up to 6 weeks while conciliation takes place.

It is therefore important to act promptly and seek immediate legal advice in the event of a workplace dispute, as the tribunal will likely reject a claim which is filed late.

You do not have to pay a fee to bring a claim in the employment tribunal.

If you instruct a lawyer, you will incur legal costs which can vary greatly depending on the complexity of the case and whether or not the case proceeds to a final hearing.

Except in limited circumstances, legal costs are not recoverable in the employment tribunal, so you are unlikely to recover your costs even if you win.

Compensation for unfair dismissal usually comprises of a ‘basic award’ and a ‘compensatory award’.

The basic award is calculated using the same formula as that for a statutory redundancy payment, which is based on length of service, age, and a week’s pay. The maximum basic award currently stands at £21,570.

The compensatory award aims to compensate you for the earnings you will lose as a result of your unfair dismissal. The maximum compensatory award currently stands at £118,223 (although in some cases it can be higher, e.g. if your dismissal was for a discriminatory reason).

Employees are under a duty to mitigate their loss, meaning that you must take reasonable steps to find new employment. If you fail to do so, your compensation may be reduced.

Flexible working is an adjustment to your working pattern, which may involve working from home, changing your working hours, or changing the days you work.

All employees have the legal right to request flexible working from day one of their employment. Employers must deal with requests reasonably and make a decision within 2 months of the request.

Your employer can only refuse a flexible working request for one or more genuine business reasons (e.g. it will cost the business too much money, it will have a negative effect on performance and/or quality of work, or your employer cannot recruit more staff to do the work).

The maximum statutory redundancy payment that you can receive, as of 6th April 2025, is currently £21,570.

Restrictive covenants are generally enforceable, but only if they are reasonable and protect your employer’s legitimate business interests (e.g. trade secrets or your employer’s relationship with its customers).

The court will not enforce covenants which are too broad or restrictive, e.g. where the length of the restriction is too long or if its geographical scope is too wide.

If you have been offered a contract of employment which includes restrictive covenants, you should seek legal advice so that you are fully aware of your options and obligations post-termination.

At Nexus Legal, we provide specialist advice to both employers and employees on a range of employment matters.

We can help you to navigate the ever-changing and complex area of employment law and provide you with clear and pragmatic advice so that you understand your rights and your options.

We have a clear focus on settling workplace disputes as quickly as possible to save you time, stress and costs. If a case does proceed to an employment tribunal, we can support you at each stage, including preparing your documents and representing you at hearings.

To find out how we can help you, contact us today.