Settlement agreements

Advice before
you sign.

Before you sign, you need independent advice on what the agreement means for you. We review the terms, explain the effect of signing and tell you whether the offer looks reasonable.

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Advice before you sign

A settlement agreement is commonly offered at the end of employment, especially on redundancy, but it can also be offered while you are still working. It usually provides a payment in return for you giving up the right to bring claims against your employer. Once signed, you lose the right to pursue the claims it covers, so it pays to understand it fully first.

The law requires you to take independent legal advice on the terms and effect of the agreement before it can settle your statutory claims. That advice must come from a relevant independent adviser, such as a solicitor, who is named in the agreement and has insurance cover. The employer usually covers the cost of this advice.

We review the terms your employer has offered to check they are fair and free of unjust conditions. We explain what signing would mean in your situation, advise on any amendments the agreement needs and look at any claims that may arise from the end of your employment, including what they could be worth.

Whether you want a pre-agreed settlement finalised or would like us to renegotiate with your employer, we act on your instructions and goals. Settlement agreements often come with a deadline, so it helps to get in touch as soon as you receive one. We offer a nationwide service and can advise in person, by telephone or online.

What we do for you

Independent advice the agreement needs to be binding
A clause-by-clause review of the terms offered
A view on whether the sum offered is reasonable
Advice on claims you may be giving up
Negotiation with your employer if you want it
In person, by telephone or online

What we check

Every agreement is different, but these are the terms we look at closely.

The payment
How much is offered, what it is made up of and when it is paid.
Notice and holiday pay
Whether contractual pay you are owed is included and taxed correctly.
Waiver of claims
Which claims you would be giving up, and whether the wording goes too far.
Confidentiality
What you can and cannot say about the agreement and your departure.
References
Whether an agreed reference is included and what it will say.
Restrictions
Any post-employment restrictions on where you can work or who you can deal with.
Legal fees
How much your employer will contribute towards the cost of your advice.

How it works

Settlement agreements often come with a deadline, so get in touch as early as you can.

Get in touch

Call us on 01582 853 783 or send over the draft agreement and any letters from your employer.
We review the agreement

We go through each clause and look at any claims you may have against your employer.
We advise you

We explain the effect of signing and tell you whether the offer looks reasonable. If you want changes, we negotiate them on your instructions.
You sign

Once you are happy, we sign the adviser’s certificate and the agreed terms take effect.

Key contact

Dean Garrett

Settlement agreements and employment

Dean has been with the firm for over 10 years, working across criminal defence, employment law and civil litigation. During that time, he has built substantial experience handling complex and high-profile matters, from serious criminal and regulatory cases to employment disputes and settlement agreements.

His employment practice includes settlement agreements, unfair dismissal, discrimination, TUPE, contractual disputes and human rights issues. Dean regularly advises employees on proposed settlement agreements, scrutinising the terms, identifying potential claims and ensuring clients understand both the value of what is being offered and the rights they are being asked to give up. Where appropriate, he advises on negotiating improved terms and protecting a client’s position before an agreement is signed.

Over 10 years with the firm
Settlement agreements and employment disputes
Criminal defence and civil litigation

24-hour line 01582 853 783 Request a callback

What our clients say

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Questions people ask

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

Why do I need a solicitor to sign the agreement?

Under section 203 of the Employment Rights Act 1996, a settlement agreement only settles your statutory employment claims if you have received independent advice on its terms and effect. The adviser must be named in the agreement and have insurance cover. Without that advice, the agreement will not prevent you from bringing those claims.

Will it cost me anything?

The employer usually covers the cost of your independent legal advice, and the agreement normally sets out how much they will contribute. Tell us what your agreement says about legal fees when you first get in touch.

Can I be offered a settlement agreement while I am still working?

Yes. They are most common at the end of employment, but employers sometimes offer them during employment in particular circumstances. If you plan to keep working for your employer, we look closely at how the terms would affect you.

What happens if I do not sign?

You are not obliged to sign a settlement agreement. If you do not, your employment and any claims you may have carry on as they would have done. We can talk through the risks either way so the decision is an informed one.

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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24-hour line 01582 853 783

Advice before
you sign.