Settlement agreement when the employee has raised whistleblowing

An employee who has made a protected disclosure is protected from detriment and from dismissal with no qualifying period and no cap on compensation, and a settlement agreement cannot stop them making further disclosures, cannot buy their silence towards a regulator, and cannot be offered in a way that is itself a detriment. What it can do is end the employment on agreed terms, waive the claims arising from the treatment the employee says they received, and leave the employer to deal with the concern the employee raised. The fixed fee is £795 for the agreement and the note on the conversation, delivered in three working days, or £995 where I also conduct the negotiation with the employee's adviser.

Who this is for

Employers in England and Wales where an employee has raised a concern about wrongdoing and the relationship has broken down, and employers who have received a solicitor's letter alleging whistleblowing detriment.

What matters in a settlement after a whistleblowing allegation

Why whistleblowing is the claim employers underestimate

A worker who has made a qualifying disclosure under section 43B of the Employment Rights Act 1996 (information they reasonably believe is in the public interest and tends to show a criminal offence, a breach of a legal obligation, a danger to health and safety, environmental damage, a miscarriage of justice, sexual harassment or a cover-up) to their employer or a prescribed person is protected from detriment under section 47B and from dismissal under section 103A, with no qualifying period, uncapped compensation, interim relief available in dismissal cases, and the employer liable for colleagues' victimisation; an employer that treats a complaint about its own conduct as a performance issue has walked into the claim, and the note helps the employer see the allegation for what it is.

The disclosure, the detriment and the dismissal as separate claims

The agreement has to deal with three things that are often confused: the disclosure itself (which the agreement cannot undo or restrict), the detriment the worker says followed (exclusion, a changed role, a disciplinary process, which is the claim under section 47B against the employer and potentially individual colleagues), and the dismissal where there has been one (automatically unfair under section 103A if the disclosure was the principal reason); the agreement waives the detriment and dismissal claims by listing them, records the facts the employer accepts and does not accept without admission, and leaves the disclosure where it is.

What the agreement cannot do and the clause that is void

Section 43J of the Employment Rights Act 1996 makes void any provision in an agreement that purports to preclude a worker from making a protected disclosure, so a confidentiality clause must carve out protected disclosures expressly, must not require the worker to tell the employer before disclosing to a regulator, must not treat a disclosure as a breach triggering repayment, and must not be drafted so as to deter disclosure; the agreement should say in terms that nothing in it prevents the worker from making a protected disclosure, reporting to a regulator or the police, or cooperating with an investigation, because a clause that tries is unenforceable and is evidence of the employer's intent.

The offer, the without prejudice rule and the risk of adding a detriment

The protected conversation under section 111A of the Employment Rights Act 1996 does not cover whistleblowing claims, so the offer must be made without prejudice on the basis of the dispute the allegation creates, and the offer itself must not be a detriment: an exit proposed because the worker raised a concern is a further act of detriment the worker can rely on, so the note explains how to raise settlement (ideally in response to the worker's own indication that they want to leave, or as one option alongside dealing with the concern), what to say, and what the employer must not say about the disclosure; an employer that tells a whistleblower it would be best for everyone if they left has made the claim for them.

The regulator, the underlying concern and what the employer must still do

The settlement does not deal with the concern the worker raised, and the employer should investigate it, correct what needs correcting, report to a regulator where the law requires it, and keep a record, because the worker may disclose to the regulator after settlement (which the agreement cannot prevent) and the employer will then be asked what it did; the agreement should record that the employer has investigated or will investigate, should not require the worker to withdraw the disclosure or state that it was untrue, and should provide the agreed reference and the protection from victimisation that a worker who has done a protected act needs after leaving.

The waiver, the price and the terms that are lawful

The agreement waives the detriment, dismissal and related claims as section 203 of the Employment Rights Act 1996 and section 147 of the Equality Act 2010 demand with independent advice certified, is priced against uncapped compensation discounted for the prospects (a strong disclosure with a clear detriment is expensive, a weak one is not, and the note helps the employer judge), contains the usual terms (notice, holiday, the compensation payment using the thirty thousand pound exemption in section 403 of the Income Tax (Earnings and Pensions) Act 2003 and notice pay treated as earnings for tax under section 402B, the employer's contribution to the adviser's fees under section 413A), and contains confidentiality and non-derogatory terms limited as section 43J and the Employment Rights Act 2025 limits on non-disclosure terms concerning harassment and discrimination on the timetable the regulations set require; the lawful terms are what make the agreement worth signing.

What it costs

Settlement agreement, £795. Drafted for your situation, with a note on how to have the conversation. Three working days.

Settlement agreement including reasonable negotiation with the employee's adviser, £995. The agreement in three working days. The negotiation then runs until the agreement is signed or it becomes clear it will not settle. Reasonable negotiation means what, in my experience, amounts to the standard back and forth on a settlement agreement. If the employee or their adviser is being unreasonable, for example by conducting themselves unprofessionally or requiring a substantial rewrite that needs material further legal advice to you, I will flag it and we will discuss how best to proceed, which may involve further fixed-fee work. That would be unusual.

Buying online forms the engagement on payment. The scope is what the settlement agreements for employers page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A bespoke settlement agreement drafted for the exit you are dealing with
• Proper waiver of the relevant statutory claims, so the agreement does what you are paying for
• Advice on the tax treatment, including the £30,000 exemption and what falls outside it
• Confidentiality, non-derogatory statements and an agreed reference
• Reaffirmation or replacement of restrictive covenants, which is often the real value
• A short note on how to open the conversation and keep it without prejudice or protected
• One round of amendments after the employee's adviser responds

What is not included

• Advising the employee, which their own adviser must do independently for the agreement to be valid
• Tribunal representation if the matter does not settle
• Payroll processing of the settlement sums
• Handling the settlement payment, since I do not hold client money

Questions I am often asked

Can the agreement stop the employee going to the regulator after they leave?

It cannot. Any term preventing a protected disclosure is void, and the agreement must say that nothing in it prevents disclosure to a regulator or the police. The employer protects itself by dealing with the concern, not by restricting the worker.

Can we offer the whistleblower an exit?

Without prejudice, on the basis of the dispute, and in a way that is not itself a detriment: not because they raised the concern, and ideally in response to their own indication that they want to leave. The note explains how.

How is a whistleblowing settlement priced?

Against uncapped compensation for the detriment and any dismissal, discounted for the prospects, which turn on whether the disclosure qualifies and whether the treatment followed from it. The note helps the employer judge both.

Related guidance and services

• Settlement agreements for employers, £795, the service this page describes
• Employment contracts and handbooks, £595
• Shareholders agreement, £995
• Whistleblowing policy
• Settlement agreement when the employee has raised discrimination

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: October 2026. Email geoffrey@caesar.co.uk.