Employment law

Settlement agreements.

Whether you want to finalise a pre-agreed settlement or want us to renegotiate with your employer, we give you independent advice that is clear, quick and tailored to your goals.

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What is a settlement agreement?

A settlement agreement, formerly known as a compromise agreement and sometimes called a severance or redundancy agreement, is a legally binding contract between you and your employer. It is commonly offered at the end of employment, especially in cases of redundancy, but employers can also offer one while you are still working for them.

In return for a payment and other agreed terms, you normally give up the right to bring certain claims against your employer. Settlement agreements can resolve a dispute without the cost, stress and delay of an Employment Tribunal, but only if the terms are fair and you fully understand what you are giving up.

A settlement agreement is only valid and binding if you have received independent legal advice on its terms and effect. That is where we come in. We review the agreement, explain what each clause means for you and tell you whether the sum offered reasonably reflects the value of any claims you may have.

You may be offered an agreement after a without prejudice conversation, when facing redundancy, termination because of ill health or stress, performance concerns or a restructure. If you have been invited to a without prejudice meeting, stay calm and get advice before you agree to anything. Handled properly, these conversations can work in your favour.

What we do for you

  • Independent advice, as the law requires
  • Employers usually contribute towards your legal fees
  • We spot weak drafting and unfair clauses
  • Strong, experienced negotiators on your side
  • Advice in person, by telephone or online
  • Help with ACAS COT3 agreements too

How we can help

Our settlement agreement solicitors guide you through every part of the process.

  1. Reviewing the terms

    We check the offer is fair and free from unjust or unclear conditions.

  2. Explaining the effect

    We explain what signing means for you and advise on any changes needed.

  3. Valuing your claims

    We assess any potential claims and whether the sum offered is reasonable.

  4. Negotiating for you

    We negotiate with your employer to improve terms and protect you from future risk.

  5. Staying in employment

    We advise you if you plan to keep working for your employer afterwards.

  6. Without prejudice conversations

    We advise you before and after a confidential settlement discussion with your employer.

  7. ACAS COT3 agreements

    We check the wording so you only waive the claims you intend to.

How it works

Settlement agreements often come with a deadline. We work quickly so you can decide with confidence.

  1. Send us the agreement

    Call us or send over the draft agreement and any letters from your employer. We will confirm how our fees are covered.

  2. We review it

    We read the agreement in detail and look at the background to your departure, including any claims you may have.

  3. We advise you

    We explain the terms and their effect in plain English and recommend any changes. If you want, we negotiate with your employer.

  4. Sign off

    Once you are happy, we sign the adviser’s certificate that makes the agreement binding, so the terms can take effect.

Attiq Malik

Key contact

Attiq Malik

Director and solicitor-advocate

Attiq has represented employees, including members of the RMT, T&G and CWU, as well as small and large businesses. He negotiates settlements and represents clients in tribunals. He has appeared in the Employment Appeal Tribunal, where he successfully argued a complex legal point that clarified the time claimants have to bring Employment Tribunal claims following ACAS conciliation. He regularly advises on settlement agreements and ACAS early conciliation.

Call 01582 853 783 Request a callback

What our clients say

Real feedback from the people we have represented, published on ReviewSolicitors and Google.

Craig Woods
Craig Woods
★★★★★
Contacted liberty law and from start to finish very happy with the whole process very helpful polite and easy to deal with they real do now there stuff
Karen
Karen
★★★★★
I could not recommend this firm enough. They manage to maintain complete professionalism whilst also being personable. Rasheda and Dean clearly explained every step of the process from beginning to end, with Dean taking the time to explain all of legal jargon. I really appreciated this as it made, what started as a daunting experience, so much easier to complete. I am so glad that I took the time to look around and read reviews before choosing any local firm. It really made a difference. Thank you Liberty Law.
Muhammad Khan
Muhammad Khan
★★★★★
Liberty Law took over my case at its hardest point. Dean Garrett was calm, straight-talking and on top of every detail from the first call: he strengthened my case, instructed an outstanding barrister, and his judgement was right at every turn. Rasheda kept everything running smoothly behind the scenes — calls arranged, documents where they needed to be, nothing ever too much trouble. My case concluded on day two of the final hearing, with an outcome I was very pleased with. They believed in my case when it mattered, and they delivered. Highly recommended.
Chapo
Chapo
★★★★★
I had an excellent experience. They were professional, knowledgeable, and always kept me informed throughout the process. They took the time to answer my questions, provided clear advice, and worked hard to achieve a great outcome. I highly recommend their services to anyone looking for reliable and dedicated legal representation. If you are looking for professionalism and results you have come to the right place!!
Tinksy 37
Tinksy 37
★★★★★
Cannot thank the guys enough my solicitor went absolutely above and beyond
Abdul Basit
Abdul Basit
★★★★★
I contacted Liberty Law Solicitors regarding one of my legal cases. Throughout the past year, Mr. Faris Nazar handled my case with exceptional dedication, honesty, sincerity, and professionalism. Thanks to his hard work and expertise, I was ultimately successful in my case. I can confidently say that this firm is highly professional and genuinely committed to serving its clients. They have earned my trust, and I would highly recommend their services.👏
Mohammed
Mohammed
★★★★★
Where do I even start from the start to the very end they delivered I can’t thank the team and Itsam Malik enough for the results we was looking at 16-20 years and they got it down to 3 years which turned into 10 months the whole team and Itsam malik are great people!
M. T
M. T
★★★★★
I cannot thank Liberty Law Solicitors enough for the support and representation I received during a very difficult and stressful time. My solicitor Dean Garrett was honest, clear, and professional from the outset, explaining my situation and the possible outcomes without giving false reassurance. I really appreciated that level of transparency. The preparation for the hearing was thorough and made a real difference. I felt well guided throughout the process and was able to stay calm and focused because of the support I received. I am very grateful for the work carried out on my case and would highly recommend Liberty Law Solicitors to anyone in need of strong, honest, and professional legal representation.
Kamal Hussain
Kamal Hussain
★★★★★
I recently sought advice and support from Atiq at Liberty Law Solicitors regarding an employment matter. I’m genuinely grateful for the way Atiq handled everything. He made the whole process feel manageable, took the time to explain things clearly, and provided steady reassurance throughout. Knowing I had someone knowledgeable and dependable guiding me made a big difference. It’s incredibly reassuring to have Atiq and the team at Liberty Law in your corner. I can’t recommend them highly enough.
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Questions people ask

General information, not advice on your case. For that, speak to us — the first conversation costs nothing.

Do I have to sign a settlement agreement?

No. You do not have to accept a settlement agreement, and you can ask for the terms to be negotiated. Before you decide, it is important to understand what claims you would be giving up and what they might be worth. We can advise you on this.

Who pays for my legal advice?

Employers usually contribute towards the cost of independent advice on a settlement agreement, and the contribution is normally written into the agreement. In many cases this covers our fee. We will confirm the position with you before we start work.

What is a without prejudice conversation?

It is a confidential discussion, usually where there is an existing or potential dispute, about resolving matters, often through a settlement agreement. What is said generally cannot be relied on as evidence later. The protection is not absolute, and threats, undue pressure or discrimination can remove it.

What is the difference between a settlement agreement and a COT3?

A COT3 is a binding settlement reached through ACAS. Unlike a settlement agreement, you do not need independent legal advice for it to be binding, which means you could waive claims you did not know about. We recommend having the wording checked before you agree.

Can the agreement be changed after I sign?

Once a settlement agreement has been signed and certified, it is legally binding and generally cannot be changed. That is why it is important to get the terms right before you sign. Talk to us as soon as you receive the draft.

Nothing on this page is legal advice, and no solicitor–client relationship is created by reading it. Every case turns on its own facts.

Tell us what has happened.

The first conversation costs nothing and commits you to nothing. Two offices, one emergency line, and a solicitor at the end of it.

Luton office

01582 853 783
43 Windmill Road
Luton LU1 3XL

9am to 5.30pm, Monday to Friday

London office

0208 528 1019
107–111 Fleet Street
London EC4A 2AB

9am to 5.30pm, Monday to Friday

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