A settlement agreement is a legally binding contract, so if your employer doesn't pay the settlement sum as agreed, they are in breach of it — you are not left without a remedy.
What are your options?
The first step is usually to raise the missed payment directly with your employer, or ask your adviser to do this on your behalf. Non-payment of the settlement sum is sometimes down to an administrative delay — a payroll cut-off missed, or a departmental handover — rather than a refusal to pay, and many cases are resolved simply by chasing it up.
Worth checking
Check your agreement for the exact payment date that applies. Our quick answer on payment timeframes covers what to look for and how long you should reasonably wait before treating a payment as late.
If the payment remains outstanding after being chased, you may have the right to bring a claim for breach of contract to recover what you are owed. Always ensure you keep a copy of your signed agreement and any correspondence about the missed payment, along with any other relevant records, as these may be important if you need to take further action.
Getting advice early, as soon as a payment is missed, often resolves the matter quickly without the need for court proceedings.
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Get in touch →This article provides a high-level overview for general information purposes only and does not constitute legal advice. It should not be relied upon as a substitute for specific legal advice tailored to your individual circumstances.
Should you choose to formally instruct us, legal services will be provided by Nexa Law Limited. Employment Settlement Solicitor is a trading name of RJB Legal Services Ltd, a limited company registered in England and Wales with number 17353836. RJB Legal Services Ltd does not provide legal advice. RJB Legal Services is a consultant practice of Nexa Law Limited, a limited company registered in England and Wales with number 10209198, which is authorised and regulated by the Solicitors Regulation Authority under SRA number 633024.