1. What is a settlement agreement?

A settlement agreement is a legally binding contract between an employer and an employee. It typically resolves disputes or outlines the terms of an employee's departure from the company. In exchange for a financial settlement or other benefits, the employee agrees not to pursue further legal claims against the employer. To request a “no commitment” review of your settlement agreement, click here to complete the “Request a review” form and upload the draft document.

2. Why do I need independent legal advice for a settlement agreement?

In the UK, it’s a legal requirement for employees to obtain independent legal advice before signing a settlement agreement. This ensures that you fully understand the terms, implications, and how the agreement affects your rights. Without this advice, the agreement cannot be legally binding.

3. How much will the independent legal advice cost me?

You won’t pay a penny for our service. The legal fees for independent advice are typically covered by your employer as part of the settlement agreement. We ensure that our fees are fully covered by your employer’s contribution, so you can focus on your next steps without worrying about costs.

4. What does the independent legal advice cover?

Our advice covers the essential terms and effects of the settlement agreement, including what you are agreeing to, what rights you are waiving, and any potential legal or financial implications. We make sure you understand all aspects of the proposed settlement agreement, so you can make a confident and informed decision on its terms.

5. Can I negotiate the terms of the settlement agreement?

Yes, you have the right to negotiate the terms of your settlement agreement. If you’re not satisfied with the terms offered, you can request changes. While our service focuses on providing clear advice on the terms you provided us for review, we can guide you on what to consider during negotiations and refer you to specialised services if needed.

6. How long does the process take?

The process is typically quick and efficient. Once you’ve uploaded your settlement agreement through our website, we aim to respond initially within 24 hours and to provide you with the necessary advice within 48 hours. If you require a quicker timeframe, please let us know on the “Request a review” form.

7. Is the information I provide confidential?

Absolutely. We take your privacy seriously and ensure that all information shared with us is kept strictly confidential. Our service complies with all data protection regulations to safeguard your personal and legal information.

8. Will I have to pay tax on the settlement payment?

Typically, the first £30,000 of a settlement payment is tax-free, but any payments related to salary, holiday pay, or bonuses are taxable as usual. We will explain the basic tax implications of your specific agreement to ensure you understand how your settlement payment will be treated.

9. What happens if I don’t sign the settlement agreement?

Settlement agreements are voluntary. If you choose not to sign, there is no agreement, and you retain the right to pursue any potential claims against your employer. Your employer may choose to proceed with other methods to end your employment, such as following a disciplinary process or redundancy procedure. We will help you understand the consequences of not signing the proposed terms.

10. If I don’t sign, how do you get paid?

Our fee is covered by the “employer’s contribution” specified in your settlement agreement. If there is no agreement, there is no employer’s contribution to pay. And we never charge our employee clients. So, is there a flaw in our approach? We don’t think so. We are employee-focused and value every individual coming to avail themselves of our services in good faith. If you don’t sign, we would discuss alternative options you have and send you on your way with our best wishes. You are worth it!