Settlement Agreement

Settlement Agreement

Need Independent Legal Advice for Your Settlement Agreement?

Under UK law, a settlement agreement is only legally binding once you have received advice from an independent solicitor. In most cases, your employer will cover the full cost of your legal advice—typically contributing between £350 and £750 + VAT. This means getting your agreement reviewed and signed through our independent partner solicitors usually costs you nothing out of pocket.

1. Redundancy & Workplace Restructuring
  • What it is: Issued when a role is being made redundant, and the employer wants to offer an enhanced redundancy package (extra money on top of statutory redundancy pay) in exchange for a clean break.

2. Mutual Separation / Voluntary Exit
  • What it is: Used when both the employer and employee mutually agree that it is time to part ways—often due to a change in strategic direction, corporate fit, or a desire for a fresh start—without going through a formal disciplinary process.

3. Performance or Capability Issues
  • What it is: Offered as a swift, amicable alternative to a lengthy and stressful performance management process (PIP) if an employee is struggling to meet targets or requirements.

4. Workplace Disputes & Grievances
  • What it is: Used to resolve an ongoing conflict, such as an unresolved grievance, a breakdown in working relationships, or allegations of unfair treatment, allowing both parties to resolve the matter confidentially out of court.

5. Ill-Health Retirement or Exit
  • What it is: Arranged when an employee can no longer fulfill their role due to long-term physical or mental illness, providing them with a financial cushion while settling any potential disability or employment claims.

Our Simple 3-Step Process

Step 1 - Book Appointment

Book your online appointment and securely upload your draft settlement agreement for your matched solicitor to review.

Step 2 - Confirm Details & Fees

Confirm your consultation slot. In most cases, your employer pays the legal fee directly under their legal contribution allowance.

Step 3 - Legal Consultation & Signing

Consult directly with an independent, SRA-regulated solicitor who explains the terms, financial risks, and your rights clearly before certifying your agreement.

Employer-Funded | Qualified Solicitors | Fast Turnaround

Further information on settlement agreements is available on request.

FAQs

Answer to Most commonly asked Questions?

What is a Settlement Agreement, and why do I need a solicitor?

A Settlement Agreement is a legally binding contract between you and your employer, usually signed when you are leaving your job. It outlines a financial package or benefit in exchange for you agreeing not to bring any legal claims against them. By law, a Settlement Agreement is only valid if you receive independent advice from a qualified solicitor.

Will I have to pay anything for my legal advice?

In the vast majority of cases, no. Your employer will almost always pay a contribution toward your legal fees (usually between £400 and £750 plus VAT). If your agreement is straightforward, our fees will fit entirely within your employer’s budget, meaning you won’t pay a penny out of pocket.

What happens if the legal fees exceed my employer's contribution?

If your situation is highly complex or requires significant negotiation to get you a better deal, the costs may exceed the initial contribution. If this happens, we will let you know immediately and can often request that your employer increase their contribution to cover the difference before any extra costs are incurred.

Does signing a Settlement Agreement mean I cannot get a reference?

No. In fact, one of the main benefits of using a solicitor is that we can negotiate a agreed-upon reference as part of the contract. This ensures your employer must provide a positive or neutral reference to any future employers you apply to.

Can I still claim notice pay and outstanding holiday pay?

Yes. Your Settlement Agreement should clearly state how your final salary, accrued but untaken holiday pay, and notice pay (or payment in lieu of notice) will be calculated and paid out. We will review the draft to ensure you are receiving every penny you are legally owed.

Yes. Your Settlement Agreement should clearly state how your final salary, accrued but untaken holiday pay, and notice pay (or payment in lieu of notice) will be calculated and paid out. We will review the draft to ensure you are receiving every penny you are legally owed.

How quickly can this be resolved?

We understand that you want to move forward quickly. Once you book your appointment and upload your documents, we can typically review the agreement, hold your consultation, and sign off on the paperwork within 24 to 48 hours.

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