If your employer has offered you a settlement agreement, for example on redundancy, the law requires you to get independent legal advice for it to be binding. A solicitor explains the terms, whether the offer is fair, and signs the adviser's certificate. Your employer usually pays the whole fee, so in most cases it costs you nothing.
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A settlement agreement (formerly called a compromise agreement) is a legally binding contract between you and your employer, usually made when your employment ends. You normally agree not to bring employment tribunal claims in return for a payment and other terms, such as a reference.
They are common on redundancy, after a dispute, or when an employer and employee agree to part ways.
For a settlement agreement to validly waive your employment rights, you must receive advice on its terms and effect from a relevant independent adviser, such as a solicitor, who is named in the agreement and has insurance in place. Your adviser then signs a certificate confirming the advice was given.
The payment
What you will receive, how it is taxed, and whether it is fair.
Claims you give up
Which claims you are waiving and whether you may have others.
Other terms
References, confidentiality, restrictions on future work and garden leave.
Negotiation
Whether to ask for better terms before you sign.
Deadline to sign your agreement? Book a free consultation today.
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Speak to your solicitor
An SRA-regulated solicitor explains the risks in plain English, by video or in person in London.
Sign your agreement
Your solicitor signs the adviser's certificate and returns it to your employer, often within 24–48 hours.
Usually your employer. Most agreements include a contribution that covers the whole fee, so in most cases the advice costs you nothing. Your solicitor checks this on your free consultation and tells you before anything starts if there would be any cost to you.
You don't need one nearby. Our SRA-regulated solicitors advise on settlement agreements by video call wherever you are in England and Wales. If you would rather meet face to face, appointments are available at the solicitor's office in London.
Yes. Settlement agreement advice is usually given by video or phone call, with the agreement signed electronically where your employer accepts it.
Often within 24–48 hours once your solicitor has the agreement. It can take longer if the terms need negotiating.
Reviewed by Saba Rehman, Solicitor
SRA-regulated · Last reviewed 13 October 2026
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