Group 139


A Settlement Agreement After Unfair Dismissal: Pros And Cons

Settlement Agreements

If you have recently been unfairly dismissed from the workplace, you might be able to make a claim for unlawful treatment to your employer. During proceedings, a settlement agreement might be offered to you by your employer, most likely with the aim to avoid a tribunal. Whilst you will go over this with your solicitor, it is important to get a wider, objective understanding of what a settlement agreement entails and whether the tribunal is a pathway worth taking for your specific case. Read on to find out more about the pros and cons of a settlement agreement.



Settlement agreements have the potential to be fast and straightforward. If the grounds for an employee’s dismissal were particularly upsetting, a long and exhaustive tribunal process could be an incredibly stressful experience for them. Rather than being forced to dwell on troubling, perhaps even traumatic past experiences, a settlement agreement provides a succinct resolution that allows an unfairly treated employee to move forward with their life.


Settlement agreements can potentially be more cost-effective than going through the tribunal process, as legal services won’t be as stringently required. Compensation is also provided for the unlawfully treated employee, further helping them move on in their life and allowing for a fresh start.


This process also has the capability to encourage healthy and frank communication between the employee and employer. Treating unfair dismissal through compromise and resolution in this manner can be productive in preventing further employment issues going forward.


Furthermore, a more personalised settlement plan can be arranged for the employee. A legal compromise which is specified to their unique situation helps counteract the employment dispute in a healthy and constructive manner.


Right To Claim

Settlement agreements waive an employee’s right to bring a claim against their employer. Whilst compensated, some might argue that money doesn’t provide ample enough justice for what could be endemic, institutionalised discrimination within a workplace. Some could argue that a settlement agreement is a band-aid solution for what might be an incredibly flawed or discriminatory method of running a business.

Public Accountability

A tribunal holds an employer accountable for their actions in an incredibly public manner, allowing them to be scrutinised by the public. Publicising the employment dispute can create solidarity with other employees who might have experienced unfair dismissals, and can inspire them to hold their own employer liable. The same can’t quite be said for settlement agreements.

In Conclusion

Whether you agree to a settlement agreement quite clearly depends on the nuances of the employment dispute in question. Both settlement agreements and tribunals each have crucial roles in employment law, allowing for distinctive manners of justice that can counteract an unfair dismissal.

With 16 years of experience, Swan Craig Solicitors are trusted solicitors who specialise in employment law. Our absolute focus in this legal field establishes a bespoke legal treatment that is sensitive yet robust in concern to your legal inquiries. If you are in need of employment tribunal lawyers, or just need legal advice on your dismissal, contact us today at 01179 200128 or legal@swancraig.co.uk.

Scroll to Top