Settlement Agreements for Solicitors, Barristers and Professional Services Partners

If you work in a law firm, accountancy practice, or other professional services partnership, a settlement agreement raises questions that don't come up in most other exits — starting with whether you're actually protected as an "employee" at all.

Are you an employee, or a partner?

Employment protections in the UK, including the right to bring most tribunal claims, depend on employee status. Equity partners in a traditional partnership are usually not employees — they're self-employed business owners under the Partnership Act 1890 or an LLP agreement. Salaried partners and fixed-share partners sit in a genuine grey area, and the answer often depends on the specific wording of the partnership or LLP agreement, not your job title. This matters enormously: if you're not an employee, unfair dismissal protection may not apply at all, and any exit is governed by the partnership agreement and general contract law instead of employment law.

Associates and other genuinely employed staff in professional services firms are on more familiar ground — the usual settlement agreement rules apply in full.

Why confidentiality cuts both ways

Client confidentiality is core to how law firms and professional services firms operate, which means settlement agreements in this sector tend to have tighter, more carefully drafted confidentiality and non-disparagement clauses than most. At the same time, you may be the one with detailed knowledge of client matters, so it's worth checking exactly what you are, and are not, restricted from discussing — both about the firm, and about client work you were involved in.

Restrictive covenants matter more here than almost anywhere else

Professional services firms rely on client relationships more than most businesses, which means non-solicitation and non-dealing covenants — restricting you from acting for or approaching clients you worked with — are used aggressively, and are often the single most contested part of a professional services exit. See our guide to restrictive covenant enforceability for how UK courts assess whether these clauses actually hold up.

Reputation and referral wording matter more too

The legal and professional services world is small, and word travels. It's worth paying particular attention to:

• What your firm will say if approached informally by a prospective new employer or client, separate from any formal written reference.
• Whether any regulatory body (such as the SRA, for solicitors) needs to be notified of the circumstances of your departure, and how that's worded.
• Whether the settlement agreement's non-disparagement clause is genuinely mutual, or only restricts you.

What to have ready before you take advice

• Your partnership or LLP agreement, or employment contract if you're not a partner.
• Details of any client relationships or matters you're currently responsible for.
• The settlement agreement itself, and any earlier drafts or side letters.

Advice from a firm that understands the sector

Deen & Co Solicitors is based on the 18th floor of 40 Bank Street, Canary Wharf, in the heart of London's legal and financial district, and regularly advises solicitors, barristers and professional services staff on settlement agreements. In almost every case, your employer pays our fee. Read more about our settlement agreement service, or send us your agreement for a same-day review.