Frequently Asked Questions (FAQ)
Our FAQ section addresses common concerns around contracts, dismissals, discrimination, redundancy, and employee rights. Whether you're seeking clarity on legal obligations or exploring your options, these answers provide practical guidance to help you make informed decisions.
What is a settlement agreement in employment law?
A settlement agreement is a legally binding contract between an employer and employee that sets out the terms of ending employment. It usually includes financial compensation, notice terms, and post-employment obligations. In return, the employee agrees not to bring employment law claims against the employer in an Employment Tribunal or Court.
Do I need a solicitor for a settlement agreement?
Yes. By law, a settlement agreement is only valid if you receive independent legal advice from a qualified solicitor. This ensures you fully understand the terms, your rights, and the consequences before signing. Without legal advice, the agreement cannot be enforced.
We provide settlement agreement advice across the UK, including London, Manchester, Birmingham, Leeds, and nationwide via video or telephone appointments.
Who pays the legal fees for settlement agreement advice?
In most cases, your employer will pay a contribution towards your legal costs for settlement agreement advice. This is standard practice and means you usually will not be out of pocket. We will always make sure your legal costs are covered where possible.
How much compensation should I get in a settlement agreement?
There is no fixed amount. Compensation depends on factors such as your salary, length of service, circumstances of your exit, and the potential value of any claims you may have (for example, unfair dismissal or discrimination).
As specialist settlement agreement solicitors in the UK, we assess whether the offer is fair and negotiate for the best outcome — whether you are based in London, the South East, the Midlands, or anywhere nationwide.
How long does it take to review a settlement agreement?
Most settlement agreements can be reviewed, advised on, and sign the same day (if not within a few days). If you have an urgent deadline, we also offer same-day settlement agreement telephone advice to clients in London and across the UK.
Can settlement agreement terms be negotiated?
Yes. You do not have to accept your employer’s first offer. We regularly negotiate better terms, including increased compensation, extended notice periods, improved references, and removal of restrictive covenants such as non compete restrictions…
What happens if I refuse to sign a settlement agreement?
If you decide not to sign, your employment rights remain the same. You may instead pursue a claim in the Employment Tribunal. We will explain the strength of your claims and advise whether negotiating a better settlement or proceeding to tribunal is in your best interests.
Is settlement agreement compensation tax-free?
In most cases, the first £30,000 of compensation for loss of employment is tax-free. However, certain payments (such as notice pay, holiday pay, or bonuses) are subject to income tax and National Insurance. We will clearly explain the tax implications before you sign.
Can I get a settlement agreement if I’m not being made redundant?
Yes. Settlement agreements are not just for redundancy. They can be used to resolve disputes, grievances, or ongoing workplace issues, providing a clean break and protecting both employer and employee.
We advise employees across the UK in all industries and roles, from executives in London financial services to employees in regional businesses nationwide.
Why choose us as your settlement agreement solicitor?
Settlement Agreement Lawyer as you solicitor have:
- Over 19 years experience as qualified employment law solicitors
- Specialists in advising on and negotiating settlement agreements
- Same-day appointments available in London and across the UK (remote or in-person)
- Transparent fixed fees (usually covered by your employer)
- Clear, practical advice tailored to your situation.
