When employees are offered a settlement agreement, one of the first questions they ask is whether they need to take settlement agreement legal advice. If they do, who do they need to speak to? Some also ask whether they can get free help from places like Citizens Advice or a community legal centre.

Because legal advice is compulsory before a settlement agreement becomes binding, it’s important to understand who can provide it and what the review process involves. 

Do You Need a Solicitor for Settlement Agreement Legal Advice?

Yes, you do need a qualified solicitor for settlement agreement legal advice.
If you don’t have the option to speak to a solicitor, you need another type of approved adviser, such as a certified trade union official.

Citizens Advice and legal advice centres can be helpful for general guidance, but they cannot sign off or certify a settlement agreement. Only a qualified solicitor or approved settlement agreement adviser can do that.

Need help now? Our settlement agreement solicitors can review your document quickly and explain your rights.

How to Get Settlement Agreement Legal Advice

You don’t always have to meet a solicitor in person. Most settlement agreement advice can be given over the phone or online. To make the process smooth, you simply email a copy of your settlement agreement to your solicitor. Send it with any documents they need to understand your situation.

Useful documents might include:

  • Your contract of employment
  • Any written terms or company policies
  • Bonus, commission or share option agreements
  • Any letters, emails or documents relating to your dispute or dismissal

If there has been a dispute, it also helps to send your solicitor a simple timeline of events before the consultation. You can meet them in person if you prefer, but it is not usually required.

Understanding Legal Costs

Before you start the process, you should ask the solicitor for clear information about legal fees. Your settlement agreement will usually include a clause where your employer agrees to contribute to your legal costs. This is normally between £250 and £1,000 plus VAT.

It’s important to ask your solicitor whether this employer contribution will:

  • Cover all of your legal advice, or
     
  • Only cover part of the cost if negotiations are needed

Many solicitors will provide settlement agreement advice within the employer’s contribution, unless you ask them to negotiate a significantly better deal on your behalf.

Always confirm whether there will be any extra cost before your solicitor begins work.

What Should My Legal Advice Include?

Your solicitor must advise you on whether any legal claims have arisen from the events leading to the settlement agreement offer. For example, if your employer followed a flawed process, behaved unfairly or breached employment law, then you may have potential claims, such as unfair dismissal, discrimination or breach of contract.

These claims can affect:

  • Whether you should sign the agreement
  • Whether your compensation is reasonable
  • Whether you could negotiate a higher payment

Our solicitors will explain whether claims have arisen, how strong they are, and whether the amount you’ve been offered is fair or should be increased.

Understanding the Clauses in Your Agreement

Settlement agreement legal advice should also cover every clause in the agreement, including:

  • Confidentiality requirements
  • Non-derogatory (non-disparagement) statements
  • The agreed reference
  • Timings of payments
  • Waiver of claims
  • Any post-termination restrictions

Our solicitors will ensure you understand each clause and that nothing in the agreement could cause problems for you in the future.

Why Legal Advice Is Essential

Settlement agreement advice isn’t just about getting the best deal; it’s also a legal requirement. A settlement agreement is only binding and enforceable if you have received independent legal advice and your solicitor has signed the adviser’s certificate.

Without this, the agreement will not be valid, and you will not be able to rely on the payments or protections within it.If you’ve received a settlement agreement, speak to us before signing. We can explain your rights, negotiate improvements and ensure the agreement protects your best interests.