Settlement Agreement
Legal Advice

Settlement agreements are legally binding contracts between an employer and an employee. They’re used to resolve statutory employment disputes (ie legal claims that employees want to make against their employer for infringing their employment rights).

Creating an effective settlement agreement prevents the matter from being litigated, usually because the employee agrees to accept compensation in exchange for not taking the case to court. This often reduces the costs and hassle for both parties. 

A settlement agreement details an employee's claims against their employer. It sets out the terms they’ve agreed on to settle their dispute, for example:

• if and when the employment will end, and any terms under which the employee will leave their position

• how much compensation the employer is offering

• how the employee will serve their notice period

For more information, read Settlement agreements with employees.

An employee must always receive independent advice for a settlement agreement to be legally binding.

Before signing a settlement agreement, an employee should get independent advice from a lawyer or other qualifying adviser. 

If you’re an employee, you may also choose to get advice before negotiating your settlement agreement if you’re unsure what you should be asking your employer to agree to. 

If you’re an employer, you may want to organise independent advice for an employee, to ensure that they are bound by your settlement agreement.

You can use Rocket Lawyer’s template to create your Settlement agreement.

Once a draft settlement agreement has been created, the advisor will ensure that the employee understands the terms of the agreement and the effect that they will have. In particular, the advisor can:

• ensure the employee understands the implications of their commitment not to take their case to court 

• advise on whether they have a potential claim for, for example, unfair or wrongful dismissal 

• suggest whether, based on the value and likelihood of success of a potential claim, the employee should accept the terms of the agreement or should ask for more compensation

• explain how the employee may negotiate different terms.

An advisor can then sign the certificate (ie section) within the settlement agreement that acknowledges that they have given the employee legal advice.

Once an employee has received independent advice, they and their employer can sign the settlement agreement with confidence.

At Rocket Lawyer, our expert solicitors provide the independent legal advice required to make your settlement agreement legally binding. We will help you:

• stay compliant with employment laws to minimise risk

• review your settlement agreement, provide relevant independent legal advice, and provide a signed advisor's certificate

• navigate the process confidently, step by step

Our legal advice service is designed to meet your specific needs. As part of this service, we provide:

• independent legal advice - our solicitors will conduct a full review of your agreement and provide the necessary signed advisor's certificate

• negotiation support - if you are not satisfied with the proposed terms, our legal experts will identify unfair clauses, propose amendments, advise on the merits of a tribunal case, and negotiate with your employer for a better outcome

Don’t leave your settlement to chance. Prevent costly disputes and ensure a clean break with expert advice today.

Just submit your details above. You’ll be contacted for a quick consultation and given a clear quote - with HALF OFF if you’re a Rocket Legal+ member.