Key Takeaways
- Discrimination-led exits: what employees should ask for in a settlement agreement after race, sex, disability or menopause includes compensation for injury to feelings, agreed references, and tailored non-financial terms.
- You are entitled to negotiate both financial compensation (such as ex-gratia payments) and practical solutions like reasonable adjustments and reference letters in a settlement agreement after discrimination.
- Confidentiality clauses and non-disparagement provisions in a discrimination settlement agreement may limit what you can discuss after leaving; our solicitors will help you understand your rights before signing.
- Our solicitors ensure you receive mandatory independent legal advice, a legal requirement under the Equality Act 2010 and s203 Employment Rights Act, so your waiver of discrimination claims is valid.
- Your employer normally pays your legal fees for the review and signing of the settlement agreement, so our service is free for you.
- Signing without legal advice could leave you unable to pursue valid race, sex, disability, or menopause discrimination claims in the future.
- Our solicitors provide remote, same-day appointments nationwide to review discrimination-led settlement agreements and protect your interests.
- Settlement Agreement Lawyers are SRA-regulated and rated Excellent on Trustpilot for helping employees achieve fair outcomes after workplace discrimination.
Discrimination-led exits: what employees should ask for in a settlement agreement after race, sex, disability or menopause
If you are facing a settlement agreement after experiencing workplace discrimination—whether based on race, sex, disability, or menopause—it’s vital to understand what you should be asking for. Discrimination-led exits require careful legal scrutiny, as signing without tailored, independent advice may mean you lose the right to claim in future.
By law, settlement agreements involving discrimination must be reviewed with independent legal advice (ILA)—a service that, in almost every case, your employer must pay for. Our solicitors offer this advice free to you, ensuring your agreement reflects all your circumstances.
This guide sets out precisely what employees should request in a settlement agreement after discrimination. We cover everything from financial compensation (including for injury to feelings) to practical remedies like references, reasonable adjustments, or workplace policy changes.
You do not need to navigate this alone. Our solicitors offer same-day, confidential advice, nationally, to review your discrimination-led settlement agreement and secure your best outcome.
What is a Settlement Agreement After Discrimination at Work?
A discrimination-led exit is where your employment ends after you have raised an issue—such as race, sex, disability, or menopause-related discrimination—protected under the Equality Act 2010. Your settlement agreement is a contract: you waive the right to bring those employment tribunal claims in exchange for specific sums and selected terms.
Legally, every discrimination-related complaint or claim must be explicitly referenced in the agreement—not just a blanket “all claims” waiver. This ensures you do not inadvertently give up future rights.
Why Do I Need Independent Legal Advice? (Statutory Requirement)
You cannot legally waive discrimination claims without first receiving independent legal advice. This requirement is set out in section 203 of the Employment Rights Act 1996 and section 147 of the Equality Act 2010. Without this advice, your settlement cannot be enforced and your rights remain open.
Our solicitors are SRA-regulated and will:
- Explain each element of what you are signing, especially your specific rights, such as those for race, sex, disability, or menopause discrimination.
- Ensure you are never pressured to accept unfair terms.
- Provide our ILA certificate (as required by law).
- Confirm your employer pays all our fees.
What Should I Ask for in a Discrimination-Led Settlement Agreement?
After discrimination—especially linked to race, sex, disability (including menopause)—it’s essential to negotiate for more than just notice pay or redundancy. You are entitled to bespoke terms.
Financial Terms
- Compensation for ‘injury to feelings’
These are based on the Vento bands and reflect the emotional harm caused. - Redundancy and notice pay
Ensure all due sums are paid, notice is taxed correctly, and injury to feelings is separate. - Ex-gratia payments
These discretionary, often tax-free sums can be included beyond your contract entitlements. - Pension and benefits
Secure confirmation that benefits and pension rights remain protected up to your last day.
Non-Financial Remedies
- Agreed written reference
Ask for a reference with no mention of discrimination or the circumstances of your exit. - Apology or statement of regret
Often valuable validation—in many cases, employers will agree. - Reasonable adjustments (disability/menopause)
Secure written confirmation of past or future adjustments, or commitments to improve. - Policy reviews/training
Employers may agree to update equality policies and provide staff training on the issues involved.
Confidentiality and Carve-Outs
- Reasonable confidentiality clauses
You must retain the right to speak to regulatory or professional advisers, family, doctors, and in future legal proceedings. - Whistleblowing protection
The agreement must not prevent you from raising concerns with regulatory bodies in future.
Is My Settlement Offer Fair? (Compensation, Non-Financial Terms, and Vento Bands)
Assessing a fair settlement involves reviewing both financial and practical remedies. For injury to feelings, the Vento bands (from 2024) are:
- Lower band: £1,200–£11,700
- Middle band: £11,700–£35,200
- Upper band: £35,200–£49,300 (exceptional cases above this)
A strong offer covers injury to feelings, lost earnings, lost pension or benefits, and practical improvements.
Tax Implications: What You Need to Know
- The first £30,000 of a genuine ex-gratia payment (not notice pay) is tax-free.
- Compensation for injury to feelings is generally tax-free, provided it is not linked to notice or earnings.
- PILON (payment in lieu of notice), holiday pay, and accrued salary are all taxable.
- Each element in your agreement must be clearly itemised to avoid HMRC disputes.
The Remote and Efficient Settlement Agreement Process
- Send us your draft agreement securely by email—no travel or delays.
- Book your consultation with our solicitors for same-day video or phone advice.
- Legal review to assess fairness, accuracy, and compliance with discrimination law.
- Negotiation (if required): Our solicitors open dialogue with your employer for improved terms.
- Signing – Once satisfied, you sign the final agreement electronically.
- Receive your settlement: Funds and our legal fees are paid directly by your employer.
Who Pays the Legal Fees? (Employer Contribution Explained)
In discrimination settlement agreements, your employer should always pay your legal fees for independent advice. This is the industry standard and ensures you are not disadvantaged in the process.
- No deduction from your compensation
- No hidden costs to you
- If your employer’s contribution is too low, our solicitors will negotiate an increase where possible
Why Use Settlement Agreement Lawyers for Discrimination-Led Exits?
- Specialist expertise: Decades of experience dealing with complex discrimination exits—race, sex, disability, menopause and more.
- Regulated and insured: Our solicitors are SRA-regulated and client-trusted.
- No cost to you: We insist the employer pays all legal review fees.
- Fast, remote, nationwide service: Same-day appointments for urgent matters.
- Negotiation strength: We regularly achieve stronger settlements and terms for our clients.
- Outstanding client reviews: Rated Excellent on Trustpilot.
FAQs: Discrimination Settlement Agreements
Can I get compensation for menopause discrimination?
Yes. Menopause can constitute disability or sex discrimination. Our solicitors routinely secure injury to feelings compensation using Vento bands.
What if my employer’s offer is too low?
Our solicitors can negotiate for higher compensation and improved non-financial terms.
Will I have to keep the settlement secret?
Some confidentiality is standard, but you should always be allowed to speak to regulators, your doctor, or those supporting your wellbeing.
How do references work after discrimination exits?
You can and should request an agreed, neutral, or positive written reference with no mention of your discrimination.
Do I have to pay for legal advice?
No. Your employer pays for all our solicitor’s advice in almost every case; this is industry standard.
How quickly can the process be finished?
Our solicitors often review and sign off settlement agreements the same day you contact us—most cases resolve within a few days.
Can I ask for non-financial terms?
Absolutely. Apologies, policy updates, or staff training are important, especially after discrimination, and can be built into your settlement.
Book Your Free Settlement Agreement Consultation
If you are leaving your job due to discrimination—on grounds of race, sex, disability, or menopause—our solicitors make the settlement agreement process easy, expert, and fully compliant. We ensure your rights are clear and protected, help you maximise financial and non-financial terms (including “injury to feelings” compensation), and handle all negotiations as your champions.
Your service is free—your employer pays our legal fees for independent settlement agreement advice. With our same-day remote video or phone appointments, you benefit from speedy, confidential support and digital signing from home. Our solicitors focus on your protection—so your settlement reflects the seriousness of your case and positions you for future success.
Call Settlement Agreement Lawyers now on 0207 459 4037 or book your free consultation online today.
This article provides expert guidance on the Settlement Agreement process to help you secure your best result with our SRA-regulated solicitors at Settlement Agreement Lawyers.
