What is a Settlement Agreement?

There are limited ways in which your employer can get you to agree to contract out of the right to make a claim before Workplace Relations Commission. A Settlement Agreement can be used to bring the issue between yourself and your employer to an end. This is a contract between two parties, confirming that neither party, has any dispute with the otherYou will be guided step by step by your solicitor if this happens in your case. We offer video calls to save you from travelling to meet us and you can meet us at times convenient to you. 

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What does a Settlement Agreement do?

In most cases, Settlement Agreements provide for the following: 

  • An employee agreeing to waive any right that they have to raise legal proceedings in the courts or employment tribunal against their employer 
  • An employer agreeing to provide the employee with some level of compensation as part of the agreement. 

It is advisable that a Settlement Agreement forms part of a wider discussion between you and your employer. Both of you are free to suggest the use of a Settlement Agreement but there must be no reason for uncertainty on whether or not you attempting to deceive your employer by attempting to appropriate payment. A Settlement Agreement usually includes a clause which refers to the fact that the agreement is entered into by both parties without any acceptance of liability on either side.  It will also nearly always include a non-disparagement clause where both of you agree not to say anything negative about the other after the execution of the agreement. 

You must have received independent legal advice in writing and signed before creating a Settlement Agreement, and the same goes for your employer. You should consider whether the terms of a Settlement Agreement are so beneficial that you are willing to lose those potential legal rights. We can advise you on any potential actions that you may have against your employer, the likelihood of success, the cost of any potential action and any alternatives. 

One of the best things I experienced was the personal touch. It can be daunting dealing with solicitors and I never felt like a hindrance. Gary was always available on the phone and email for me and always responded very quickly. I know of an elderly person dealing with Gary who really appreciated being able to meet face to face in a place where she felt comfortable. I think both types of meetings are great as clients have various needs which were met very easily in the way SOS operates.


Friendly, easy to talk to, professional support from start to finish. The service was exceptional, communication was timely and never overbearing. Everything was explained clearly along with expected timelines for completion. The team went above and beyond to sort out any issues that may have arisen during the process. Overall, very satisfied with the service.


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If a Settlement Agreement is put before you and you refuse to accept it, you will be precluded from relying on the proposal in any future litigation. It has no legal standing until both you and your employer sign it. It is advisable that you only sign a Settlement Agreement where its financial terms are favourable to you. As there is no obligation to accept it, if you refuse you will be able to pursue whatever potential claims you have against your employer. 

We will ensure you, as an employee, are fully informed as to the consequences of signing a Settlement Agreement and waiving your employment rights. 

Make a Free Enquiry

Call us Now on 061 513113, email info@soslegal.ie or complete our Free Online Enquiry form for a free, no-obligation discussion and let us explain your legal options

Gary O’Sullivan

Solicitor, Head of Department

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