Protected Conversations and Settlement Agreements

Specialist employment solicitors supporting employers in managing confidential discussions and employee exits.

Protect sensitive discussions and manage exits with confidence.

Navigating employee exits can be one of the more delicate aspects of running a business. Whether it’s due to underperformance, a breakdown in working relationships or a shift in business needs, there are times when it’s appropriate to have a frank discussion about parting ways.

At Thomas Mansfield Solicitors, our experienced employment law solicitors help employers use protected conversations effectively – managing risk, protecting confidentiality and reaching clear, legally sound outcomes through settlement agreements.

With offices in London and across the South East, we provide practical, strategic advice to employers at every stage – from preparing for the conversation to finalising the exit agreement.

What is a protected conversation?

A protected conversation is a confidential discussion between an employer and employee about ending the employment relationship on agreed terms. These conversations are protected under section 111A of the Employment Rights Act 1996, meaning that – when used appropriately – they cannot be referred to in claims for ordinary unfair dismissal.

They allow employers to:

  • Raise the possibility of a mutual exit without triggering a formal process.
  • Offer a settlement agreement to bring the employment to an end on agreed terms.
  • Minimise disruption, protect reputation and avoid future disputes.
  • Maintain control over how sensitive issues are managed and resolved.

It’s a practical option when a clean break is in everyone’s interests – but it must be handled carefully to ensure the protection applies.

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Protected conversations or ‘without prejudice’ – what’s the difference?

Employers often ask whether to label a discussion as a protected conversation or a ‘without prejudice’ conversation. While both offer a degree of confidentiality, they work in different ways and apply in different situations.

  • Protected conversations provide protection to employers but only to claims of ordinary unfair dismissal, and only if there’s no improper conduct (such as discrimination or harassment).
  • Without prejudice conversations are broader but only apply where there’s already an existing dispute between the parties.

If the wrong approach is used, the conversation may not be protected – leaving the business exposed if the relationship deteriorates. That’s why we always advise employers on the right mechanism to use, and how to frame the discussion legally and appropriately.

When to use a protected conversation

Protected conversations are particularly useful when formal procedures may not be appropriate, or where continued employment is no longer viable.t
Common scenarios include:

  • Ongoing concerns around performance, conduct or compatibility.
  • A breakdown in trust between senior colleagues.
  • Proposals for organisational change not suited to every employee.
  • Informal complaints where continuing the relationship may be difficult.
  • Cases where the employee may be open to a mutually agreed exit.

We work closely with employers to assess whether a protected conversation is the right step, and if so, how best to approach it.

How we support employers

Using a protected conversation to open the door to a settlement agreement is a strategic move – but the success of that approach depends on timing, tone and execution.

We support employers by:

  • Advising on whether a protected conversation or ‘without prejudice’ route is most appropriate.
  • Helping you plan and prepare for the conversation, including scripting key points.
  • Managing any legal risks around discrimination, whistleblowing or breach of contract.
  • Drafting or reviewing settlement agreements that protect the business and comply with employment law.
  • Ensuring the exit agreement covers tax, notice, confidentiality, references and post-termination restrictions.
  • Negotiating and liaising with the employee’s adviser where needed.

Our role is to provide clear, commercially focused advice that allows you to resolve matters quickly, lawfully and with minimal disruption.

Planning a protected conversation?

Approaching an employee about a possible exit is rarely straightforward. Whether you’re managing a performance issue, a breakdown in trust or the departure of a senior leader, a protected conversation can offer a discreet, constructive way forward – but only if handled correctly.

Why employers choose Thomas Mansfield

  • Specialist expertise in exits and negotiations – We regularly advise on protected conversations, settlement agreements and senior departures, guiding employers through complex and sensitive decisions.
  • Recognised and accredited – We’re recommended in The Legal 500, Lexcel accredited, and active members of the Employment Lawyers Association.
  • Strategic, commercial advice – Our focus is on securing fair, enforceable agreements that protect your business interests and reduce legal risk.
  • Trusted by employers at all levels – From growing SMEs to large corporates, our clients rely on us to manage employee exits with discretion, clarity and control.
  • Responsive and proactive – We act quickly when timing is critical, providing clear advice and support at pace.
  • Experienced in senior-level exits – We advise on executive and board-level terminations, where reputational, regulatory and shareholder considerations are key.
  • Accessible and easy to work with – With offices in London and the South East, we support employers locally and internationally with flexible, tailored service.
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We make sensitive exits simpler to manage

We take a calm, pragmatic approach to protected conversations and settlement agreements – helping you make confident decisions and avoid unnecessary risk.

  • Get in touch – We start with a confidential, no-obligation call to understand the situation, the individuals involved and your preferred outcome.
  • We provide practical, strategic guidance – You’ll receive a clear plan on whether and how to hold a protected conversation, what to say, and how to structure the agreement.
  • You get support that fits your business – Whether it’s a one-off matter or part of a wider exit programme, we tailor our advice to suit your structure, your workforce and your risk profile.

Speak to our employment law solicitors today to manage exits the right way. 

Call our employment law team on 020 4579 5997 or

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Please note we do not offer legal aid or no win no fee agreements.

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