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Settlement agreements: what to check before you sign

Your employer has offered a settlement agreement. These are the points we look at first.

A settlement agreement ends your employment on agreed terms, and in return you give up the right to bring most claims against your employer. For it to be binding you must get independent legal advice, and most employers contribute to the cost.

The money

Check how the payment is split. Notice pay and holiday pay are taxed in the usual way. Up to £30,000 of a genuine compensation payment can usually be paid tax-free. We check the split is right before you sign.

The reference

Ask for the wording of your reference to be agreed and attached to the agreement, so there is no surprise later.

What you're giving up

Most agreements waive every possible claim. If you think you have a claim for discrimination or whistleblowing, tell us before you sign, because it may be worth more than the offer.

We usually turn a settlement agreement around within 2 working days, and in most cases the employer's contribution covers our fee.

This guide is general information, not advice on your situation. Call 01632 960 418 to speak to James.