Settlement Agreement Legal Advice for Employees

Considering a settlement agreement from your employer? Get independent legal advice quickly, clearly, and with care, with CCS Law.

What Is a Settlement Agreement for Employment?

A settlement agreement is a legally binding contract between an employer and an employee. Typically offered when employment is ending, it sets out the terms on which both parties agree to part ways — in exchange for the employee waiving their rights to bring certain legal claims (such as unfair dismissal or discrimination) to an Employment Tribunal.

These agreements used to be known as “compromise agreements.” Now, they’re more commonly referred to as settlement agreements — a more fitting term for a mutual resolution.

Why Have I Been Offered a Settlement Agreement?

You may be offered a settlement agreement if:

• Your employer is restructuring or downsizing

• There are ongoing disputes or grievances

• You're on a performance improvement plan (PIP)

• There’s been a breakdown in the working relationship

• They wish to avoid a lengthy disciplinary or redundancy process

While it’s often the employer that initiates a settlement agreement, employees can request one too — especially if they feel they’re being “managed out” or would prefer a clean and respectful exit.

Do I Need a Solicitor?

Yes. You must receive independent legal advice for a settlement agreement to be valid under UK law. Your employer will usually pay for this advice, or at least contribute towards the cost.

At CCS Law, we:

• Explain the terms of your agreement in plain English

• Advise whether the deal is fair given your legal rights

• Make sure you fully understand what you’re signing away

• Negotiate better terms, where appropriate

• Provide the required certificate of advice

We can also support you if you simply need a solicitor to sign off the agreement — fast, efficiently, and affordably.

What Should I Expect to Receive?

Typical financial terms may include:

• Notice pay (or payment in lieu of notice)

• Holiday pay

• Tax-free compensation (up to £30,000 in many cases)

• Any bonus or commission owed

• Pension or healthcare contributions (depending on the scheme)

  
  

You may also want to negotiate:

• A neutral or positive reference

• Continued access to your company laptop, car, or phone

• A non-derogatory clause to prevent the employer from speaking ill of you

• A mutual confidentiality clause

Every situation is different — that’s why personalised legal advice matters.

Is the Offer Fair?

We understand that accepting a settlement agreement isn’t just about the money — it’s also about protecting your reputation, rights, and peace of mind.

At CCS Law, we help you:

• Assess your legal claims (e.g., unfair dismissal, discrimination, whistleblowing)

• Compare the offer to what you might win at an Employment Tribunal

• Understand the tax treatment of each payment

• Get clarity on your post-employment obligations, such as restrictive covenants

If needed, we can also negotiate on your behalf to increase the compensation or improve the terms.

How Much Does It Cost?

Usually, your employer covers your legal fees for settlement agreement advice, typically between £350–£500 + VAT, depending on the complexity of the agreement.

At CCS Law:

• We work within your employer’s contribution wherever possible

• We’ll let you know upfront if additional advice is needed (e.g., negotiating terms)

• We offer a fast turnaround, often same-day or within 48 hours

  
  

Why Choose CCS Law?

✔ Specialist UK Employment Law Expertise 

✔ Fast & Friendly Service — Online or In Person 

✔ Transparent Fees — No Surprises 

✔ Experienced With All Types of Agreements — From Senior Executives to Entry-Level Staff

Whether you just need a quick review or want strategic advice on how to push for more — we’re here to support you professionally, fairly and calmly.

Frequently Asked Questions (FAQs)

🟣 Can I refuse to sign the settlement agreement? Yes. It’s entirely voluntary. If the offer is unfair, you can reject it and explore other legal options.

🟣 What happens if I sign without legal advice? The agreement won’t be legally binding. That’s why employers cover the cost of your legal advice.

🟣 How quickly can CCS Law review and sign my settlement agreement? Often the same day if urgent, or within 24–48 hours.

🟣 I’ve been put on sick leave or a performance plan — should I accept the offer? We’ll help you weigh your options based on your legal position and long-term interests.

Ready to Speak with a Solicitor?

To get expert, confidential advice on your settlement agreement:

📞 Call us on +44 (0)203 576 2076 

📧 Email: info@ccs.law 

📝 Or submit your query securely online using our contact form.

Disclaimer: This article is intended for informational purposes only and does not constitute legal or tax advice.