Being handed a settlement agreement by your employer is an unsettling moment. It usually arrives at the end of a difficult period, the document is dense with legal language, and there is often a deadline attached. You may be unsure whether the terms are reasonable, what you are giving up by signing, or even why you are being asked to take separate legal advice at all. It is a lot to take in at exactly the point you have the least appetite for it.
At Beeston Shenton, our team in Newcastle-under-Lyme provides independent legal advice on settlement agreements for clients across Staffordshire and Cheshire. The purpose of this article is to explain what a settlement agreement is, why independent advice is required, and exactly how we can and cannot help, so you know what to expect before you get in touch. Our contact details are at the foot of the page.
What Is a Settlement Agreement?
A settlement agreement is a legally binding contract between you and your employer. In return for an agreed payment or set of terms, you usually agree to waive your right to bring certain claims against the employer, such as a claim to an employment tribunal. They are commonly used on the end of employment, but can also be used to resolve a workplace issue while employment continues.
Because the agreement asks you to give up legal rights, the stakes are real. Once signed, it is very difficult to unwind, which is why the law builds in a safeguard.
Why You Need Independent Legal Advice
For a settlement agreement to be valid and binding, the law requires that you receive independent legal advice on its terms and effect from a qualified adviser. Without that advice, the agreement generally cannot achieve what the employer intends.
This is not a formality to be rushed through. It is your opportunity to understand precisely what you are agreeing to, what you are giving up, and what the financial and practical consequences are, before you commit. Employers will often contribute towards the cost of this advice as part of the arrangement.
How We Can Help
Our role is to provide that independent advice clearly and properly. We will go through the terms of the agreement with you so that you fully understand what each clause means and how it affects you. We make sure you know what you are signing, what rights you are waiving, and whether the document does what it says it does.
For many people, this is exactly the reassurance they need: a clear, professional explanation of an intimidating document, delivered without fuss. One client described the experience as a pleasure, noting how quickly and professionally his matter was understood and brought to a close.
What We Do Not Do, and How We Still Help
We want to be straightforward about the limits of our service, because it saves you time. We advise on the terms of the settlement agreement you have been presented with. We do not act in the negotiation between you and your employer on any disputed points within it.
Where you need help with negotiation or with a wider employment law matter that falls outside advising on a settlement agreement, we work closely with other professionals in the area who have that expertise, and we can often point you towards an appropriate contact. The aim is that you end up in the right hands, whether that is with us or with someone we can recommend.
Why Clients Choose Us for Settlement Agreement Advice
When you are dealing with a settlement agreement, you want advice that is prompt, clear and genuinely independent. The deadline is usually close, the language is unfamiliar, and you simply want to know where you stand. That is the service we set out to provide: a careful read of the terms, a plain explanation of what they mean for you, and a quick turnaround so that the deadline does not become another source of stress.
Talk to a Settlement Agreement Solicitor in Newcastle-under-Lyme, Stafford or Knutsford
If you have been presented with a settlement agreement and need independent advice on its terms, our team would be glad to help.
Our head office is at 64 King Street, Newcastle-under-Lyme, with meeting rooms available by appointment in Stafford and Knutsford. We act for clients across Staffordshire and Cheshire.
- Newcastle-under-Lyme: 01782 662424
- Stafford: 01785 332999
- Knutsford: 01565 754444
- Email: info@beestonshenton.co.uk
You can also see the overview of our service on our Employment Law page.
Frequently Asked Questions
Why do I have to take legal advice on a settlement agreement?
For a settlement agreement to be valid and binding, the law requires you to receive independent legal advice on its terms and effect from a qualified adviser. It protects you by making sure you understand what you are agreeing to.
Will I have to pay for the advice myself?
Employers will often contribute towards the cost of the independent legal advice as part of the agreement. The position varies, so it is worth checking what your agreement provides.
Do you negotiate the terms of the agreement with my employer?
No. We provide independent advice on the terms of the agreement you have been presented with. We do not act in the negotiation between you and your employer on disputed points. Where negotiation or wider employment advice is needed, we can often recommend an appropriate contact.
How quickly can you advise me?
Settlement agreements usually come with a deadline, and we aim to turn this work around promptly. Get in touch as soon as you can so we have time to go through the document with you properly.
What does the agreement actually do once I sign it?
It is a binding contract under which you typically waive certain legal claims in return for agreed terms. Once signed it is very difficult to unwind, which is why understanding it fully beforehand matters so much.
This article is intended as general guidance and does not constitute legal advice. Each case turns on its own facts and you should always seek tailored advice from a qualified solicitor before acting on anything you read here. Beeston Shenton Solicitors Limited is authorised and regulated by the Solicitors Regulation Authority (SRA Number: 420578).
