Employment Law

Settlement Agreements

A settlement agreement can resolve a dispute or set the terms of leaving a job. Before you sign, you need to understand the payment, the claims covered and any obligations that continue afterwards.

Employment application paperwork
Employment Law SJS Solicitors, Balham

Understanding your next steps

How we can help

Review the proposed terms

We can explain the agreement, including the leaving date, payments, reference, confidentiality and any restrictions on future work. Tell us what has been discussed and which terms matter most to you.

Independent advice

An employee must receive qualifying independent advice for a statutory settlement agreement to be effective. The advice concerns the terms and effect of the agreement, including its impact on specified claims.

Consider changes

The first draft may leave questions about a reference, a payment date or the employer’s contribution to legal fees. We can discuss the proposed terms and whether negotiation is within the agreed work.

A clear way forward

What happens next

  1. What to have ready

    Send the complete draft, employment contract and any covering email. Include your start date, salary details, notice terms and the employer’s deadline.

  2. Your next step

    Contact us before signing and tell us the proposed response date. We can confirm availability, the scope of advice and the cost, including any contribution offered by your employer.

Planning ahead

Fees and timescales

01 / Fees

What the costs cover

An employer may offer a contribution towards independent advice. We confirm whether it covers the proposed work and what you would pay if further advice or negotiation is needed. Do not assume the contribution covers everything.

02 / Timescales

Timing and deadlines

The document should allow time for proper consideration and advice. Send it promptly if a short deadline is proposed. We will confirm what can be done within the available time.

Read our published Price Guide, then contact us to confirm the work you need and the costs involved.

View Price Guide

Useful to know

Your questions, answered

Do I have to accept the offer?

You do not have to agree simply because a draft has been sent. Consider the alternatives and consequences with an adviser before deciding.

Will my employer pay your fee?

They may offer a contribution. We check the amount and scope with you first, including VAT and any additional work.

Are all the payments tax-free?

No. The tax treatment depends on the type of payment and the circumstances. Salary, holiday pay and notice-related payments need particular care. We can identify where further tax advice is needed.

Can the agreement include a reference?

A reference can be an important term to discuss. If agreed, its wording and how requests will be handled should be recorded clearly.

General information for England and Wales. Contact us for advice about your circumstances.

SJS Solicitors · Balham

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