What Should I Do If I’m Happy With My Settlement Agreement?
Being offered a settlement agreement can be a long time coming. If you’ve been through weeks of negotiation with your employer and you’re satisfied with what’s on the table, it might feel like the hard part is over. In one sense, it is, but there are still important steps to take before anything is finalised.
You Still Need Legal Advice for Finalising a Settlement Agreement
This is the part that surprises many people. Even if you’ve agreed on the financial terms and you’re ready to sign, a settlement agreement is not valid without independent legal advice. Without it, the agreement fails under Section 203 of the Employment Rights Act. This means it cannot legally waive your employment rights, and could be unenforceable.
This isn’t a formality for the sake of it. An employment solicitor will:
- Explain what every clause in the agreement actually means
- Flag any terms that could restrict your future career
- Confirm whether the compensation on offer is reasonable for your specific situation
- Make any final amendments that protect your position before you sign
Even when you’re confident in the deal, a fresh pair of eyes often spots something worth changing.
What Is a Sign-Only Service?
If you’re happy with the financial terms and simply need a solicitor to advise you and sign the agreement off, this is known as a sign-only service. It’s a focused, efficient process. Rather than entering into fresh negotiations, your employment solicitor reviews what’s already agreed. Then, they advise you on the terms and complete the legal certificate that makes the agreement binding.
It’s worth being clear, though: sign-only doesn’t mean rubber-stamping. Settlement agreements can cover a wide range of terms beyond financial payments. This can include references, restrictions on future actions and confidentiality obligations, and every clause needs to be read carefully. Small changes at this stage can make a meaningful difference to your position after you leave.
Timing Matters for Settlement Agreements
Timelines for finalising a settlement agreement can range from several weeks for straightforward matters to longer for more complicated situations. In many sign-only cases, however, the turnaround is much faster, often within 24 hours.
If you’re working to a deadline set by your employer, make sure you tell the solicitor upfront. We are able to accommodate same-day or next-day advice where needed. It’s worth asking about turnaround times before you instruct anyone.
Choosing the Right Settlement Agreement Solicitor
Not all employment solicitors who handle employment law handle settlement agreements regularly. Some firms pass this work to junior members of staff with limited experience in the area. This is not ideal when the advice you receive determines whether the agreement is valid and whether the terms genuinely protect you.
When choosing a settlement agreement solicitor, look for:
- A specialist who focuses on employment law and settlement agreements
- Experience advising employees, not just employers
- Clear communication and plain-English explanations
- A realistic turnaround time that fits your deadline
- Proper professional indemnity insurance — the adviser must hold professional indemnity insurance at the time of giving advice, or the agreement may be unenforceable
It’s entirely reasonable to ask a firm about the experience of the person who will be advising you before you instruct them.
What About Multiple or Collective Redundancies?
If your employer is making a larger number of redundancies at the same time, you may be one of a group of employees all being offered similar settlement agreements. This is common in restructuring situations and is handled slightly differently.
In these cases, a firm of solicitors will often send a specialist to advise the group, either at the employer’s premises or at a neutral venue. Each employee receives individual advice on how the terms apply to their specific circumstances, even where the agreements are broadly similar. Collective redundancy situations often attract reduced fee arrangements, so it is worth asking about this if it applies to you.
The Terms That Look Fine Can Still Cause Problems Later
One of the most common mistakes employees make is focusing solely on the financial payment and overlooking the other clauses in the agreement. Restrictive covenants can have a real impact on your next role if they are too broad or poorly worded.
Confidentiality clauses, reference wording and post-termination restrictions all deserve the same attention as the payment figure. A settlement agreement solicitor with genuine experience in this area will know what is reasonable and what to push back on.
Ready to Finalise Your Settlement Agreement?
If you’ve reached the point where you’re happy with what’s been offered and you need a solicitor to advise you and sign off the agreement, we can help. Our specialist settlement agreement solicitors deal with settlement agreements every day. We offer fast turnaround, including within 24 hours where needed, and will make sure the terms are right before anything is signed. Get in touch today to find out how we can help you reach a clean, confident conclusion.
