Do I need legal advice before signing a settlement agreement?

If you have been given a settlement agreement by your employer it is important that you make an appointment to obtain legal advice on the agreement.

A settlement agreement will not become a legally binding agreement unless an employee has received legal advice on the agreement.

The Employment Rights Act provides that an employee must obtain independent legal advice on the terms and effect of the settlement agreement and its effect on an employee’s ability to pursue his/her rights before an employment tribunal. This is because you are agreeing to waive your employment law claims against the employer by entering into the settlement agreement.

The law is in place to protect employees and to prevent them from entering into agreements, waiving their rights to any future claims without taking legal advice first.

As legal advice is a requirement, employers will usually pay for, or contribute towards the cost of obtaining legal advice in relation to the agreement.

How can Ellis Jones help?

At Ellis Jones, we are happy to cap our fees at the contribution offered by your employer for explaining the agreement to you. If you would like assistance with negotiating terms, we may provide you with a separate fee estimate for this work which we would discuss with you.

If you have a settlement agreement, our Employment Solicitor, Rebecca Bennett would be happy to assist you. Please contact settlementagreements@ellisjones.co.uk or Rebecca.bennett@ellisjones.co.uk or phone 01202 525333.