Agreement review
Understand the Agreement Before You Sign
We check the complete document, explain the employment claims you will give up and identify payments or clauses that may require further attention.
How the review service works ›
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Settlement agreement explained
A settlement agreement is a legally binding contract between an employer and an employee. It commonly records the terms on which employment will end, including compensation, contractual payments and other arrangements relating to the employee’s departure.
In return for the agreed terms, the employee usually agrees not to pursue the employment claims identified in the document. Settlement agreements were previously known as compromise agreements.
For an agreement to validly settle statutory employment claims, it must be in writing, identify the particular claims being settled and confirm that the employee has received advice from a relevant independent adviser. The adviser must also be properly insured and identified in the agreement.
Your solicitor will explain the legal effect of signing, check the financial and practical terms and make sure you understand the rights you will give up. If any payment or wording does not reflect your circumstances, we will identify the points that may require clarification or amendment.
Find Out More Before You SignA straightforward review process
You do not need to understand the complete agreement before contacting us. Start by requesting a confidential call back and telling us when your employer needs a response. A member of our team will discuss the appointment with you and explain how to provide the relevant documents securely.
1. Provide the agreement: We will normally need the proposed settlement agreement and your employer’s covering letter or email. Your employment contract, a recent payslip or other documents may also be helpful, depending on the terms being reviewed.
2. Speak with an employment solicitor: Your solicitor will review the document and discuss the circumstances that led to the offer. During the appointment, they will explain the payments, the employment claims being settled and any obligations that continue after your employment ends.
3. Ask questions about the terms: You will have an opportunity to raise concerns about the compensation, reference, confidentiality wording, tax provisions, restrictions or any other part of the proposed agreement.
4. Complete the agreement or consider changes: If the agreement is ready to sign, your solicitor can complete the independent adviser’s certificate and explain the final steps. If amendments are recommended, we can discuss clarification or separate negotiation support.
Services for employees
The support you need will depend on the agreement and your circumstances. You may require independent advice and sign-off, help assessing or negotiating the proposed terms, or an initial estimate of the payments included in your offer.
An employment solicitor will review the complete agreement, explain the payments and legal effect, answer your questions and advise if the document is ready to sign.
If the compensation appears too low, contractual payments are missing or other terms are unsuitable, we can assess your position and approach your employer when instructed.
Estimate the main financial components of your offer and compare the result with the written agreement. The calculation is an estimate and does not replace independent legal advice.
Why an agreement may be offered
A settlement agreement can be proposed at any stage of employment and for a range of reasons.
Your employer may be proposing redundancy, responding to a workplace dispute or seeking to end the employment relationship on agreed terms. Receiving an offer does not mean that you must accept it, and the proposed terms can be considered before anything is signed.
The reason for the offer may affect the compensation, the employment claims being settled and the terms that require the closest attention. Independent advice should consider both the written agreement and the circumstances that led to it.
Settlement Agreements for EmployeesAn agreement may be offered during a redundancy or restructuring process to record the termination date, contractual payments, redundancy pay and any additional compensation.
An employer may propose an agreed departure after a grievance, breakdown in the working relationship or another unresolved workplace dispute.
A settlement agreement may be presented as an alternative to starting or continuing with a formal performance, capability or disciplinary procedure.
An offer may follow concerns involving discrimination, whistleblowing, pregnancy or maternity, sickness or disability, unpaid remuneration or another potential employment claim.
An employer and employee may decide that an agreed departure is preferable to continuing the employment relationship or pursuing a lengthy formal process.
Practical questions
These are some of the questions employees commonly ask after receiving a settlement agreement. Your solicitor will provide advice based on the wording of your agreement and your individual circumstances.
No. Settlement agreements are voluntary, and you do not have to accept the first offer made by your employer. You can decline the proposal, ask questions or request changes before anything is signed. You should obtain independent advice so that you understand the offer, the claims being settled and the possible consequences of accepting or rejecting it.
You should be given a reasonable amount of time to consider the written terms and obtain independent advice. The Acas Code recommends allowing at least 10 calendar days as a general rule, although a different period may be appropriate or agreed depending on the circumstances. Tell us immediately if your employer has imposed an urgent deadline.
Many employers offer a contribution towards the cost of the independent legal advice required for the agreement, but they are not generally required to pay every legal cost. We will explain what work is covered by the proposed contribution and tell you before carrying out any additional work that may result in a further charge.
It depends on the type of payment. Salary, holiday pay, bonuses, commission and payments relating to your notice period are normally subject to tax and National Insurance. Some qualifying termination payments may be paid tax-free up to a combined limit of £30,000. Your solicitor will explain the tax wording in the agreement, but specialist tax advice may be required in more complex cases.
Yes. Settlement agreement appointments can usually be completed by telephone or video call, with documents exchanged electronically. In-person appointments are also available at our Cheltenham office. The most suitable arrangement will depend on your preference, the documents involved and your employer’s deadline.
Client feedback
Feedback from clients who have instructed Pembridge Solicitors across a range of legal matters.
“Through each stage, they kept me informed.”
MS · Client review
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“He consistently shows exceptional professionalism and attention to detail.”
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Confidential settlement agreement enquiry
Leave your contact details and preferred time to call. You do not need to upload your agreement at this stage. A member of our team will contact you to discuss your employer’s deadline, the support you need and the appropriate next step.
Your information will be handled confidentially. If your employer’s deadline is urgent, call us directly on 0330 900 0377. Sending this form does not create a solicitor-client relationship.
