Settlement agreement solicitors

You cannot sign one without independent legal advice, and your employer will usually pay for it. Most people use that advice to get the document signed off. The more valuable question is whether the offer is any good.

Two different pieces of work

Signing it off. A solicitor advises you on the terms and effect of the agreement and signs a certificate confirming they have done so. Without that certificate the agreement does not validly waive your statutory claims, which is why your employer wants it and why they usually contribute to the cost. This takes an hour or so and, where the contribution covers it, costs you nothing.

Working out whether to accept. What your claims are worth if you ran them, what the realistic settlement range is, and which terms are worth negotiating. This is the part almost nobody asks for, and it is where the money is.

We will tell you at the first call which of those you need. Sometimes the offer is good, the reason behind it is unremarkable, and the right advice is to sign. Often it is not.

What determines whether an offer is good

What is behind it. An offer made during a genuine redundancy is a different thing from an offer made three weeks after you raised a grievance about your manager. The second is not a redundancy payment; it is the price of not having a discrimination or whistleblowing claim, and it should be priced accordingly. If your employer would prefer the reason never came out, that has a value.

What your claims are actually worth. Unfair dismissal compensation is currently capped at £123,543 or 52 weeks’ actual pay, whichever is lower — and that cap is removed entirely from 1 January 2027. Discrimination and whistleblowing claims have never been capped, and carry a separate award for injury to feelings, currently £1,300 to £62,900 and beyond in exceptional cases. Which category you are in usually matters more than anything else in the negotiation.

What is not in the offer. Most agreements are drafted for the employer and leave out things worth asking for: an agreed reference in a fixed form annexed to the agreement, payment in lieu of notice treated correctly for tax, outplacement support, retention of a laptop or phone, treatment of deferred bonus and unvested share awards, an agreed internal and external announcement, the removal or narrowing of restrictive covenants, and a mutual confidentiality clause rather than a one-way one.

The tax. Up to £30,000 of a genuine termination payment can usually be paid free of tax and National Insurance, but that treatment does not apply to contractual payments such as notice or bonus, and the way an agreement is drafted affects what falls where. A badly structured agreement can cost you thousands for no reason.

The timing point people miss

Your leverage is highest before you sign and before you have been out of work for long. Once the agreement is executed, the claims are gone.

There is no legal minimum period for you to consider an offer, but Acas guidance suggests ten calendar days is reasonable, and employers will usually allow it if asked. An employer pressing you to sign within 24 hours is either disorganised or applying pressure, and either way it is worth asking for time.

Taking advice does not commit you to anything, and your employer is not told what advice you received.

What we do

Review the agreement and the circumstances behind it. Tell you what your claims would be worth. Identify the terms worth negotiating and the ones that do not matter. Negotiate on your behalf where that is what you want — or give you the analysis and stay out of it, if you would rather handle it yourself.

Then, if you are signing, provide the certificate.

What it costs

Where your employer contributes and the work is limited to advising on and signing the agreement, the contribution usually covers it in full. We confirm that before starting.

Where you want the negotiation, or the claim assessment, that is charged at £400 per hour plus VAT with an estimate agreed first. In our experience it pays for itself more often than not, but we will tell you honestly if we do not think it will in your case.

Questions

Questions people ask us

Do I have to use my employer's suggested solicitor?

No. You are entitled to choose your own adviser, and the contribution is usually payable whoever you use. A solicitor suggested by your employer is not necessarily bad, but they are not the only option.

Can I negotiate, or is the offer final?

Almost always negotiable, though not always by much. What moves the number is a credible analysis of what the claim is worth, not simply asking for more.

What if I have already signed?

Then the claims covered by the agreement have generally gone. Occasionally there are routes — where the agreement does not meet the statutory requirements, or where a claim was not in contemplation. Worth a conversation, but do not count on it.

Will I get a reference?

Only if the agreement says so. Agree the wording, annex it to the agreement, and include what will be said if the reference is requested by telephone.

How long do I have to decide?

No legal minimum, but Acas guidance suggests ten calendar days is reasonable and most employers will allow it. If you are being pressed, ask for time in writing.

The hub

Employment law →

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Unfair and constructive dismissal →

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Whistleblowing and protected disclosures →

Start with a conversation

A free 20-minute call. Tell us what has happened and we will tell you whether we can help, what it would involve and roughly what it would cost.

No charge

A free 20-minute call

Tell us what has happened and we will tell you whether we can help, what it would involve and roughly what it would cost. No advice is given on this call and there is no charge for it.

£350 plus VAT

A paid strategy session

One hour with a partner, followed by a written summary of your position and options. For people who want proper advice without instructing a firm yet. Credited in full against your fees if you go on to instruct us.

Or reach us directly

0207 112 8818

WhatsApp +44 7476 045967

[email protected]

We answer enquiries the same working day.