If your employer has offered you a settlement agreement, it’s essential to understand both the legal implications and the practical steps involved. This is where a settlement agreement solicitor comes in. Getting advice on a settlement agreement is not just a formality – it ensures you’re making informed decisions and not missing out on what you may be entitled to.
In this article, we’ll explain what a settlement agreement is, why legal advice is required, how to prepare for a consultation, and what to consider when choosing a solicitor.
What Is a Settlement Agreement?
A settlement agreement is a legally binding document, usually offered by an employer when employment is coming to an end. It typically involves the employee waiving their right to bring certain claims in return for a financial payment or other benefits.
Because signing a settlement agreement means giving up legal rights — such as the right to claim unfair dismissal — the law requires employees to obtain independent legal advice before the agreement becomes valid.
To learn more about settlement agreements, check out our guide: What is a Settlement Agreement? Advice for Employees
Why You Need a Settlement Agreement
The law outlines specific conditions that must be met for a settlement agreement to be legally binding. According to the Employment Rights Act, employees must obtain formal advice. Although this can be obtained through an advice centre or a Union Representative, legal advice is usually provided by an employment solicitor specialising in settlement agreements.
The legal requirement isn’t just a formality. A settlement agreement solicitor will check that:
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The terms are clear and fair
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You understand what rights you’re giving up
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Any compensation offered reflects your circumstances (e.g. salary, length of service, reason for dismissal)
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Additional terms like confidentiality clauses or references are reasonable
Solicitors may also spot potential claims you haven’t considered and advise whether the agreement is a good deal in light of those risks.
How to Prepare for Legal Advice
To make the most of your consultation with a solicitor, it helps to be prepared. You’ll typically need:
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An electronic copy of the draft agreement
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Your employment contract
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Any relevant correspondence (especially relating to dismissal or redundancy)
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Your employer’s contact details (so the solicitor can communicate with them if needed)
You should also be ready to discuss the background to your departure and any concerns you have about the agreement.
Choosing a Settlement Agreement Solicitor
Not all legal advice is the same. When selecting someone to advise you, consider the following:
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Specialisation: Employment law is complex. Choose a solicitor who regularly deals with settlement agreements.
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Availability: Settlement agreements often have deadlines. Look for someone who can respond promptly.
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Fees: Most employers contribute to the cost of legal advice on a settlement agreement. Check whether the solicitor’s fees are covered and whether any additional charges might apply.
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Remote Advice: Many solicitors can advise by phone or email, which can speed things up and make the process easier to manage.
Can a Solicitor Help You Negotiate Better Terms?
Although some people are happy to accept what their employer is offering, others want help negotiating a better settlement agreement — for example, a higher payment, an agreed reference, or changes to post-employment restrictions. There are several ways a solicitor can help you to negotiate.
1. A solicitor will know the relevant legal arguments
You may feel you’ve done your research and you’ve got a good understanding of your legal position.
However, even if you’ve spent days trawling through Google search results, you’re probably not going to have the depth of knowledge you need to get the best deal on your settlement agreement.
For example, you may have potential claims for unfair dismissal, breach of contract, discrimination etc. All of these are fairly technical areas of law.
Unless you’re sure that you’ve understood these claims, you’ll be better off putting the negotiation in the hands of a solicitor.
2. Your solicitor has a good idea of how much money you can expect in a settlement agreement
Do you know how much money you should get in your settlement agreement? It depends on a number of factors, such as:
- Your salary
- The length of time you’ve worked for your employer
- Your age
- How your employer has treated you
- How long it’s likely to take you to find another job
There are also ‘soft’ factors to take into account, such as the goodwill between you and your employer and the contribution you’ve made to the business.
By getting proper legal advice, you can be sure that you’ll maximise your prospects of obtaining the best possible deal on your settlement agreement.
3. You may be paying more tax than you need to
Some settlement agreements are not as tax-efficient as they could be. To maximise the benefit to you, a solicitor will be able to advise on how much tax you should be paying on the settlement agreement and whether the document could be redrafted to save you tax.
Final Thoughts
The role of a settlement agreement solicitor is about more than satisfying a legal requirement. It’s about making sure you’re treated fairly, your legal rights are protected, and you’re in the best possible position as you leave your job.
Whether your agreement is straightforward or more complex, expert legal advice gives you the clarity and confidence you need to move forward.
Need Advice on a Settlement Agreement? Get Free Expert Advice Today!
Are you looking for advice on negotiating a settlement agreement? Contact an employment law specialist.
Why Choose Mason Bullock Solicitors?
- Specialised Expertise: We are employment law specialists, providing tailored advice on settlement agreements.
- Proven Success: We have advised hundreds of satisfied clients on resolving their employment issues.
- No-Obligation Consultation: Get a FREE Consultation to discuss your unique situation, including an expert assessment of any proposed settlement.
No Charge to You
In most cases, your employer covers our fees for advice on the settlement agreement, so there’s no cost to you. For additional services, we offer straightforward, honest pricing with no hidden fees—just clear, up-front costs tailored to your case.
Take Action Now!
For a free no-obligation consultation about a settlement agreement, call 0330 333 6050
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Andrew Crisp is the Principal Solicitor at Mason Bullock Solicitors, where he specialises in employment law and dispute resolution. With over two decades of legal experience, Andrew has built a reputation for his expertise in advising employees on settlement agreements and helping clients navigate complex litigation processes, including the removal of County Court Judgments (CCJs).