What Does a Settlement Agreement Solicitor Do?

Unlike most employment documents, a settlement agreement cannot simply be signed and returned.

The law requires you to receive independent legal advice before the agreement becomes legally binding.

This protects employees from signing away valuable legal rights without fully understanding the consequences.

Without independent legal advice:

• the settlement agreement will usually not be legally enforceable;
• your employer cannot rely upon the waiver of Employment Tribunal claims;
• the statutory requirements for a valid settlement agreement will not have been satisfied.

What Does the Law Require?

Settlement agreements are governed principally by:

• Section 203 of the Employment Rights Act 1996
• Section 147 of the Equality Act 2010
• Other legislation depending upon the legal claims being waived.

Your solicitor must sign an Adviser Certificate confirming that:

• they are an independent adviser;
• they are insured to provide legal advice;
• they have advised you on the terms and effect of the agreement;
• the statutory conditions have been satisfied.

Only then does the agreement become legally binding.

What Will a Settlement Agreement Solicitor Actually Do?

An experienced solicitor does much more than simply explain the document.

Their role includes protecting your legal and financial interests throughout the process.

1. Explain the Entire Agreement in Plain English

Settlement agreements often contain legal terminology that can be difficult to understand.

Your solicitor will explain:

• every clause;
• every legal obligation;
• what each provision actually means in practice;
• any unusual or unfair wording.

The aim is that you fully understand what you are signing.

2. Assess Whether the Offer Is Fair

One of the most important parts of the advice is determining whether the offer is reasonable.

Your solicitor will consider:

• your salary;
• length of service;
• notice entitlement;
• contractual benefits;
• holiday pay;
• bonus arrangements;
• pension rights;
• redundancy payments;
• legal claims;
• future financial losses.

This enables them to advise whether the compensation properly reflects your circumstances.

3. Identify Potential Employment Claims

A settlement agreement usually requires you to waive your right to bring Employment Tribunal proceedings.

Before recommending that you sign, your solicitor should assess whether you may have claims such as:

• unfair dismissal;
• constructive dismissal;
• discrimination;
• harassment;
• victimisation;
• whistleblowing;
• unlawful deduction from wages;
• breach of contract;
• redundancy consultation failures.

The stronger your legal position, the stronger your negotiating position may be.

4. Negotiate Better Terms

Many employees are surprised to learn that settlement agreements are frequently negotiable.

An experienced solicitor may negotiate:

• increased compensation;
• higher legal fee contributions;
• an agreed employment reference;
• payment of bonuses;
• commission;
• private medical insurance;
• share options;
• garden leave arrangements;
• pension contributions;
• confidentiality wording;
• restrictive covenants;
• announcement wording.

Often relatively small changes can provide significant long-term benefits.

5. Review Tax Treatment

Settlement payments can contain several different components.

Your solicitor should explain:

• which payments are taxable;
• which may be paid tax-free (subject to current legislation);
• notice pay;
• holiday pay;
• bonus taxation;
• pension implications.

Where necessary, specialist tax advice may also be recommended.

6. Explain Restrictive Covenants

Many agreements contain clauses restricting what you can do after leaving your employment.

These may include:

• non-compete restrictions;
• non-solicitation clauses;
• non-dealing provisions;
• confidentiality obligations;
• restrictions on approaching colleagues.

Your solicitor will explain:

• whether the restrictions are new or already exist in your contract;
• whether they remain enforceable;
• whether they can be negotiated or waived.

7. Check the Employment Reference

Many settlement agreements include an agreed reference.

Your solicitor should review:

• its wording;
• factual accuracy;
• completeness;
• suitability for future employment.

A carefully drafted reference can be one of the most valuable parts of the settlement package.

8. Ensure the Agreement Protects You

Good settlement agreements should provide certainty.

Your solicitor will check matters such as:

• termination date;
• notice arrangements;
• return of company property;
• confidentiality;
• announcements;
• ongoing benefits;
• indemnities;
• warranties;
• future obligations.

The objective is to avoid disputes arising after your employment has ended.

Will My Solicitor Speak to My Employer?

Yes, if you ask them to.

Many employees prefer their solicitor to deal directly with the employer or HR department.

Your solicitor may:

• negotiate improved terms;
• agree amendments;
• deal with legal correspondence;
• arrange execution of the agreement;
• confirm completion.

This often removes stress and ensures negotiations remain professional.

Will My Employer Pay My Solicitor?

Usually, yes.

Most employers contribute towards the cost of independent legal advice because they need the settlement agreement to be legally binding.

Typical contributions range from £350 to £750 plus VAT, although more complex cases frequently justify higher contributions.

If negotiations become particularly involved, your solicitor may also negotiate an increased legal fee contribution from your employer.

How Long Does the Process Take?

Straightforward cases can often be completed within:

• 24 to 72 hours.

More complex negotiations may take:

• several days; or
• several weeks.

The timescale depends upon:

• the complexity of the agreement;
• negotiations;
• amendments required;
• the responsiveness of both parties.

What Should You Expect From a Good Settlement Agreement Solicitor?

An experienced employment solicitor should:

✓ explain everything clearly;

✓ respond promptly;

✓ identify legal risks;

✓ answer your questions honestly;

✓ negotiate where appropriate;

✓ protect your legal rights;

✓ ensure the agreement is legally compliant;

✓ minimise delays;

✓ provide practical commercial advice.

Why Choose an Employment Law Specialist?

Settlement agreements are a specialist area of employment law.

Although many solicitors can advise on settlement agreements, an employment law specialist will usually have significantly greater experience in:

• Employment Tribunal claims;
• negotiating exit packages;
• discrimination claims;
• executive exits;
• redundancy programmes;
• restrictive covenants;
• whistleblowing cases;
• workplace disputes.

Specialist knowledge often leads to stronger negotiations and better outcomes.

How Settlement Agreement Expert Can Help

At Settlement Agreement Expert, we have over 30 years' experience advising employees throughout England and Wales on settlement agreements.

Our service includes:

• fixed-fee advice (usually paid by your employer);
• same-day appointments where possible;
• telephone and video consultations;
• straightforward legal advice in plain English;
• negotiation of improved settlement terms;
• advice on tax, references, restrictive covenants and legal claims;
• direct communication with your employer where required.

Our aim is to ensure that you understand your agreement fully and achieve the best possible outcome.

Frequently Asked Questions

Is using a settlement agreement solicitor compulsory?

Yes. In almost every case, independent legal advice is a legal requirement before a settlement agreement becomes binding.

Can my employer choose my solicitor?

No.

Your solicitor must be independent and act solely in your best interests.

Can a solicitor negotiate more money?

Yes.

Many settlement agreements are negotiable, particularly where there are potential legal claims or aspects of the agreement that require amendment.

How long does a settlement agreement appointment take?

Most appointments last between 30 and 60 minutes, depending on the complexity of the agreement and whether negotiations are required.

Do I have to meet my solicitor in person?

No.

Most settlement agreement advice is now provided remotely by telephone or video call, making the process quick and convenient for employees across England and Wales.

Key Takeaways

• A settlement agreement solicitor is legally required to make most settlement agreements binding.
• Their role is to protect your legal and financial interests.
• They explain the agreement in plain English and advise whether it is fair.
• They assess potential Employment Tribunal claims and negotiate improvements where appropriate.
• Employers usually pay for your legal advice.
• Choosing an experienced employment law specialist can significantly improve your outcome.