Settlement Agreement Solicitors

Your employer's lawyers wrote it. Get a solicitor who is working for you.

A settlement agreement permanently waives your right to bring tribunal claims. Before you sign, a specialist employment solicitor must advise you — and in most cases your employer pays that cost. The initial offer is rarely the best one. Get advice first.

Employer-funded legal advice in most cases Initial offer is almost always negotiable Free initial consultation Urgent same-day advice available

What You Need to Know

Six things every employee should understand before signing.

Settlement agreements are one of the few employment law situations where the law requires you to take legal advice. Understanding why matters before you put pen to paper.

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Independent legal advice is mandatory

A settlement agreement is only legally binding if you have received advice from a qualified independent adviser — usually a solicitor — who has confirmed the terms and their effect. Without that, the agreement cannot be enforced and you retain all your employment tribunal rights.

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Your employer usually pays the legal fees

It is standard practice for employers to make a contribution to your legal advice costs — typically £250 to £500 plus VAT. If your situation is straightforward, this often covers the full cost. Where there are claims to negotiate, additional advice may be needed but the solicitor will be clear about any cost before proceeding.

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The first offer is rarely the final offer

Employers typically start low. A solicitor who reviews your agreement can identify the claims you are waiving — unfair dismissal, discrimination, unpaid bonuses, notice pay — and use them to negotiate a better package. Even a modest uplift often far exceeds the cost of getting proper advice.

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Up to £30,000 may be tax-free

Compensation payments in settlement agreements are often partly or wholly tax-free up to £30,000, depending on what they represent. Contractual payments — notice pay, holiday pay, bonuses — are taxable in the normal way. How the agreement categorises each element affects how much you actually receive. A solicitor will review this.

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Confidentiality clauses can be negotiated

Most settlement agreements include non-disclosure clauses preventing you from discussing the settlement or making disparaging comments about your employer. The scope of these clauses can be negotiated — including carve-outs for HMRC, professional regulators, or speaking to close family members.

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You do not have to sign

Accepting a settlement agreement is always your choice. Refusing does not necessarily lead to dismissal, and in some cases the employer's conduct in the negotiation can itself become evidence in a tribunal claim. A solicitor will advise on whether the offer is reasonable, what you could recover at tribunal, and whether to accept, negotiate, or decline.

How It Works

Fast, clear advice — usually at your employer's cost.

Most settlement agreement reviews can be completed quickly. Submit your details and a solicitor will explain what your offer includes, what you are giving up, and whether the terms can be improved — before you face any pressure to sign.

Submit Your Request
1

Share your offer details

Tell us the headline figures, any deadlines your employer has set, and any issues at work leading up to the offer.

2

Solicitor reviews the agreement

A specialist employment solicitor reviews the full document, identifies the claims you are waiving, and assesses whether the offer reflects their value.

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Advice, negotiation or sign-off

You receive a clear explanation of your position. The solicitor can sign off the agreement if it is fair, or negotiate improved terms with your employer on your behalf.

Before You Sign

Once signed, you cannot go back.

A settlement agreement permanently closes the door on tribunal claims. Get proper advice first — in most cases it costs you nothing and often results in a better deal.

Review My Settlement Agreement

Common Questions

Settlement agreements — what people ask us.

How long do I have to decide whether to sign?

There is no statutory minimum period, but the ACAS Code of Practice recommends at least 10 calendar days to consider a settlement offer. Some employers set shorter deadlines — these can usually be pushed back, and an artificially short deadline is itself a factor a solicitor can use in negotiations. If you are being pressured to sign immediately, that is a reason to get advice urgently, not a reason to comply.

My employer has called it a "without prejudice" conversation. What does that mean?

"Without prejudice" means the conversation cannot normally be used as evidence in tribunal proceedings. Employers use this protection to open settlement discussions without the risk of it being cited as an admission. However, it does not prevent you from seeking legal advice about what was said, and in some circumstances — such as improper pressure or discrimination — the "without prejudice" protection can be lifted.

Can I carry on working while negotiating a settlement agreement?

Yes, in most cases. Settlement agreements are often negotiated while you are still employed, particularly where redundancy or a performance process is ongoing. Continuing to work does not prevent you from negotiating terms, and resigning before signing could affect your entitlements. A solicitor can advise on timing based on your specific situation.

What claims am I giving up when I sign?

The agreement will specify which claims are being waived — usually unfair dismissal, discrimination, breach of contract, unpaid wages and tribunal claims. Some agreements attempt to waive all possible claims, including future ones. A solicitor will check exactly what is being excluded and whether any claims should be carved out or reflected in the compensation figure. You cannot validly waive personal injury claims you are not yet aware of, or pension rights.

Will signing a settlement agreement affect my benefits or reference?

Your eligibility for Universal Credit and other benefits depends on the reason for leaving and the nature of the payment — advice from a benefits specialist may also be worthwhile. On references, the agreement should include a provision for an agreed reference. A solicitor will check that this is included and that it is acceptable to you before advising you to sign.

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