Settlement Agreement Solicitors | Independent Legal Advice
Do not sign away employment rights without proper advice. We review settlement agreements, explain the legal effect and advise on whether the offer is fair.
Estimate your settlement position before you sign
Use our calculator to estimate possible redundancy, notice and employment-claim values. The result is an initial guide, not legal advice; the agreement and the facts still need to be reviewed.
Send us these three things
- The complete settlement agreement
- Your signing deadline
- Your concerns about pay, tax, reference wording or restrictions
How settlement agreements work
Legal validity
The agreement must be in writing, cover particular claims and name an insured independent adviser. The employee must receive independent advice on the terms and their effect. Read the Acas guidance.
Tax treatment
The £30,000 threshold is not a blanket exemption. Notice pay, salary and holiday pay are normally taxable, while qualifying termination payments may fall within the threshold. Check the GOV.UK guidance.
Terms that may be negotiated
Depending on the facts, negotiations may cover compensation, notice, accrued holiday, bonus, reference wording, confidentiality, restrictive covenants and the employer contribution to legal costs.
Independent Legal Advice
A settlement agreement is only effective if the employee receives independent legal advice from a qualified adviser. We explain what claims are being waived, whether the payment is adequate and whether any terms need changing.
Fixed-fee review
Many employee settlement agreement reviews can be provided for a fixed fee. Send us the agreement and deadline.
What We Check
| Clause | Why It Matters |
|---|---|
| Payment | Whether notice, holiday, compensation and tax wording are correct. |
| Claims | What rights you are giving up. |
| Reference | Whether future employment prospects are protected. |
| Restrictions | Whether post-termination covenants are too broad. |
Frequently Asked Questions
What is a settlement agreement?
It is a binding agreement where an employee waives claims in exchange for payment or other terms.
Do I need a solicitor?
Yes. Independent legal advice is required for the waiver of statutory employment claims to be valid.
Who pays the legal fee?
Employers often contribute to the employee’s legal advice fee, but the agreement should be checked.
Can I negotiate?
Yes. Payment, reference wording, notice, holiday, bonus, restrictive covenants and confidentiality can often be negotiated.
Is the first £30,000 tax free?
Genuine termination payments may qualify up to £30,000, but notice, holiday and wages are usually taxable.
How long does advice take?
Straightforward reviews can often be handled quickly once all documents are received.
What is an agreed reference?
A reference wording agreed in the settlement agreement to reduce future uncertainty.
Can restrictive covenants be changed?
Sometimes. Overly broad restrictions may be negotiable.
What if I do not sign?
You keep your legal claims but may not receive the settlement payment. Take advice before deciding.
Can NA Law advise employers too?
Yes. We draft and advise on fair, enforceable settlement agreements.
Get Employment Law Advice
Tell us what has happened, your deadline and what outcome you need. We will help you decide the next step.