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Specialist advice for employees

Settlement Agreement Solicitors in Cheltenham

Received a settlement agreement from your employer? Our employment solicitors review the complete document, explain the payments and legal effect, and advise if any terms should be clarified or changed before you sign. Appointments are available in person at our Cheltenham office, by telephone or by video call.

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Agreement review

Understand the Agreement Before You Sign

We check the complete document, explain the employment claims you will give up and identify payments or clauses that may require further attention.

How the review service works
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Negotiating an agreement

Advice on Improving Your Offer

We assess the compensation and the wider terms of your departure, including your reference, confidentiality obligations and restrictions on future work.

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Settlement calculator

Check the Main Payment Figures

Estimate the compensation, notice pay, holiday pay and other amounts in your offer, then compare the result with the written agreement.

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Settlement agreement explained

What Is a Settlement Agreement?

A settlement agreement is a legally binding contract between an employer and an employee. It commonly records the terms on which employment will end, including compensation, payments owed under your contract and other arrangements relating to your departure.

In return for the agreed terms, you will usually agree not to bring certain employment claims against your employer. Settlement agreements were previously known as compromise agreements.

For the agreement to settle certain employment claims, it must be in writing and identify the claims covered by the agreement. You must also receive independent legal advice from an appropriate adviser. In most cases, this advice is provided by a solicitor who is advising you rather than your employer.

Your solicitor will explain what signing the agreement means for you, check the payment and other important terms and make sure you understand the rights you are agreeing to give up. If something does not reflect what you have agreed with your employer, we can identify what may need clarifying or changing.

Employers will also commonly contribute towards the cost of the required legal advice. You can read more about settlement agreement costs and legal fees before arranging your review.

Find Out More Before You Sign

How Can We Help?

0330 900 0377

A straightforward review process

How Our Settlement Agreement Review Works

You do not need to understand the agreement before you contact us. Request a confidential call back and tell us when your employer needs your response. We will explain what to send us and arrange a time for a solicitor to go through the agreement with you. You can also read our full settlement agreement process before arranging an appointment.

1. Send us your agreement: We will normally need the settlement agreement and any letter or email your employer sent with it. Your employment contract or a recent payslip may also be useful.

2. Speak to an employment solicitor: Your employment solicitor will read the agreement and talk through what has happened. We will explain what your employer is offering, the employment rights you are agreeing to give up and any terms that will still apply after you leave.

3. Ask questions: You can ask about the payment, your reference, confidentiality, how different payments may be taxed, any restrictions after you leave or anything else in the agreement that you are unsure about.

4. Sign or make changes: If everything is in order, your solicitor can sign the required adviser certificate and explain what happens next. If something needs changing, we can explain your options and, if you want us to, help with negotiating your settlement agreement with your employer.

Why an agreement may be offered

When Might You Be Offered a Settlement Agreement?

A settlement agreement can be proposed at any stage of employment and for a range of reasons.

Your employer may be proposing redundancy, responding to a workplace dispute or seeking to end the employment relationship on agreed terms. Receiving an offer does not mean that you must accept it, and the proposed terms can be considered before anything is signed.

The reason for the offer may affect the compensation, the employment claims being settled and the terms that require the closest attention. Independent advice should consider both the written agreement and the circumstances that led to it.

Settlement Agreements for Employees

  • Redundancy and Restructuring

    An agreement may be offered during a redundancy or restructuring process to record the termination date, contractual payments, redundancy pay and any additional compensation.

  • Workplace Disputes and Grievances

    An employer may propose an agreed departure after a grievance, breakdown in the working relationship or another unresolved workplace dispute.

  • Performance, Capability or Disciplinary Concerns

    A settlement agreement may be presented as an alternative to starting or continuing with a formal performance, capability or disciplinary procedure.

  • Potential Employment Claims

    An offer may follow concerns involving discrimination, whistleblowing, pregnancy or maternity, sickness or disability, unpaid remuneration or another potential employment claim.

  • A Mutually Agreed Departure

    An employer and employee may decide that an agreed departure is preferable to continuing the employment relationship or pursuing a lengthy formal process.

Practical questions

Settlement Agreement FAQs

These are some of the questions employees commonly ask after receiving a settlement agreement. Your solicitor will provide advice based on the wording of your agreement and your individual circumstances.

Do I Have to Accept a Settlement Agreement?

No. Settlement agreements are voluntary, and you do not have to accept the first offer made by your employer. You can decline the proposal, ask questions or request changes before anything is signed. You should obtain independent advice so that you understand the offer, the rights you are agreeing to give up and the possible consequences of accepting or rejecting it.

How Long Should I Be Given to Consider the Agreement?

You should be given a reasonable amount of time to consider the written terms and obtain independent advice. The Acas Code recommends allowing at least 10 calendar days as a general rule, although a different period may be appropriate or agreed depending on the circumstances. Tell us immediately if your employer has imposed an urgent deadline. You can also read our settlement agreement process to see what normally happens from receiving the agreement through to signing.

Will My Employer Pay My Solicitor’s Fee?

Many employers offer a contribution towards the cost of the independent legal advice required for the agreement, but they are not generally required to pay every legal cost. We will explain what work is covered by the proposed contribution and tell you before carrying out any additional work that may result in a further charge. See our guide to settlement agreement costs and legal fees for more information.

Is Settlement Agreement Compensation Tax-Free?

It depends on the type of payment. Salary, holiday pay, bonuses, commission and payments relating to your notice period are normally subject to tax and National Insurance. Some qualifying termination payments may be paid tax-free up to a combined limit of £30,000. Your solicitor will explain the tax wording in the agreement, but specialist tax advice may be required in more complex cases.

Can My Agreement Be Reviewed Remotely?

Yes. A settlement agreement review can usually be completed by telephone or video call, with documents exchanged electronically. In-person appointments are also available at our Cheltenham office. The most suitable arrangement will depend on your preference, the documents involved and your employer’s deadline.

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Confidential settlement agreement enquiry

Request a Confidential Call Back

Leave your contact details and preferred time to call. You do not need to upload your agreement at this stage. A member of our team will contact you to discuss your employer’s deadline, the support you need and the appropriate next step.

Your information will be handled confidentially. If your employer’s deadline is urgent, call us directly on 0330 900 0377. Sending this form does not create a solicitor-client relationship.