If your employer has handed you a settlement agreement, you may feel under pressure to make a quick decision. Before you sign, you need to understand what you will receive, what you are giving up and what the agreement requires you to do.
At Frederick Solicitors, we provide straightforward settlement agreement advice to help you make an informed decision. Our specialist employment solicitors are based in Leeds and advise employees across England and Wales remotely.
What does a settlement agreement do?
A settlement agreement is a legally binding contract used to resolve specified employment claims. It often sets out the terms of your departure, including a payment and an agreed leaving date. It can also settle a dispute while employment continues.
The claims covered by a valid waiver cannot normally be pursued afterwards. This is why the wording matters as much as the payment. Do not assume that a document described as “standard” has no consequences for your circumstances.
Why do you need independent advice?
For the statutory waiver of employment claims to be effective, legal conditions must be met. These include a written agreement identifying the particular complaints or proceedings, advice from a relevant independent adviser on its terms and effect, including how it affects your ability to pursue those claims before a tribunal, and appropriate insurance for that adviser. The agreement must identify the adviser and state that the applicable statutory conditions have been satisfied.
The adviser can be a qualified lawyer or another adviser who meets the statutory requirements, such as an appropriately certified trade union adviser. Your employer’s own solicitor cannot provide the independent advice you need.
What should your solicitor check?
- The claims being settled and any rights expressly preserved.
- The payment breakdown, deductions and payment deadline.
- Your leaving date, notice arrangements and outstanding holiday.
- Promises you are asked to make about your conduct or another job.
- Confidentiality, references and restrictions affecting future work.
Tell your solicitor about any grievance, discrimination concerns, sickness absence or unpaid earnings. Those details help put the written offer into context. Bring your employment contract and the employer’s covering email as well as the agreement.
Who pays the settlement agreement legal fees?
Employers commonly contribute towards independent advice, although they are not generally required by law to do so. An employer contribution does not make your solicitor the employer’s adviser: we advise you.
Our settlement agreement advice service is designed to work within the employer’s agreed contribution. We will confirm the scope and funding before starting. If you also want us to negotiate changes or undertake additional work, we will explain any separate fees first.
How long do you have to decide?
The Acas Code recommends, as a general rule, at least ten calendar days to consider the formal written terms and obtain advice, unless the parties agree otherwise. This is not an automatic cooling off period after signing. If the deadline is short, send it to us promptly so we can discuss the next step.
Get clarity before you commit
Have an agreement ready to review? Speak to our settlement agreement solicitors. We will explain the terms in plain English, identify points requiring attention and help you decide how to respond.
Call 0113 868 0956 or use the enquiry button below. Tell us your employer’s deadline when you get in touch.
Start your settlement agreement today
Start your settlement agreement today
Related guidance and local advice
Considering a counteroffer? Read our guide to negotiating a settlement agreement. Our settlement agreement FAQs cover common questions about fees, payments and signing.
We advise employees by phone and online, including in Leeds, London, Manchester, Sheffield, Birmingham, Bristol, Cambridge, Newcastle, Nottingham, Oxford.