Do I have to use my employer's suggested solicitor?

No — you can choose your own independent adviser. The key requirement is that the adviser is independent of your employer.

Will I have to pay for settlement agreement advice?

In many cases, the employer contributes to the legal fee as part of the settlement agreement. We will confirm the position when you send us your documents.

Can this be done remotely?

Yes — we regularly advise clients across England & Wales without office attendance. Documents can be sent securely and we can advise by phone or video call.

How quickly can you review my settlement agreement?

We aim to review and advise within 24–72 hours of receiving your documents, depending on complexity and any deadline your employer has set.

What if I want to negotiate a better deal?

We can advise on whether the offer is fair and, if appropriate, propose amendments or negotiate improvements on your behalf. This may attract an additional fee, which we will discuss upfront.

Is a settlement agreement the same as a compromise agreement?

Yes. The term "compromise agreement" was the previous legal name for what is now called a settlement agreement. They are the same document — the name changed under the Enterprise and Regulatory Reform Act 2013.

What claims can a settlement agreement cover?

A settlement agreement can cover unfair dismissal, redundancy, discrimination, breach of contract, unpaid wages, holiday pay, and other employment tribunal claims. The agreement must specifically identify the claims being waived.

How much is a typical settlement agreement payment?

Settlement payments vary widely depending on your salary, length of service, strength of any claims, and your employer's willingness to negotiate. We can advise on whether the offer you have received is reasonable based on your specific circumstances.

Settlement Agreement Solicitors (Compromise Agreements)

Q: What is a settlement agreement?

A settlement agreement (formerly called a compromise agreement) is a legally binding contract between an employer and employee. It typically ends the employment relationship and waives the employee's right to bring employment tribunal claims in exchange for a financial payment and agreed terms.

Independent legal advice on settlement agreements — fast, clear, fixed fee. Employer usually contributes to your legal costs.

A settlement agreement is only legally binding if you have received independent legal advice from a qualified solicitor. Before you sign, make sure you understand what you are agreeing to — and whether the deal is fair.

✅ Employer usually contributes to legal fees✅ Clear fixed-fee options from £600 inc VAT✅ Fast turnaround when deadlines matter✅ Remote service across England & Wales

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Definition

What is a Settlement Agreement?

A settlement agreement (previously known as a compromise agreement) is a legally binding contract between an employer and an employee. It is used to bring the employment relationship to an end — or to resolve a dispute — on agreed terms. In exchange for a financial payment and other agreed terms, the employee waives their right to bring specified employment tribunal claims.

For a settlement agreement to be legally valid, the employee must receive independent legal advice from a qualified adviser who is independent of the employer. The adviser must sign a certificate confirming they have provided that advice. Without this, the agreement cannot be enforced.

Settlement agreements are commonly used in redundancy situations, following a disciplinary or grievance process, or where an employer and employee have agreed to part ways. They can also be used to resolve ongoing employment disputes without going to tribunal.

Our Service

What our settlement agreement advice includes

We provide clear, practical advice on what you are signing — and whether the deal is fair. We will explain your rights, check the financial terms and advise on any restrictions that could affect your future career. Our advice covers:

Plain-English explanation of what you are signing and what rights you are waiving

Check the financial terms — notice pay, holiday pay, bonuses and deductions

Review confidentiality clauses, post-termination restrictions and reference wording

Explain your potential employment tribunal claims and leverage

Advise on whether the financial offer is fair given your circumstances

If appropriate: propose amendments and negotiate improvements on your behalf

Sign the adviser certificate so the agreement becomes legally binding

Fixed Fees (inc VAT)

Review + Advice + Signing Certificate (Standard)

£600 inc VAT

Designed to fit typical employer contributions; suitable where no negotiation is needed.

Review + Advice + One Round of Amendments / Negotiation

£900 inc VAT

Where you want us to propose changes or negotiate on your behalf.

Executive / Complex Settlement Agreement

£1,500 inc VAT

Share plans, restrictive covenants, detailed negotiation.

Typical timescale

Often 24–72 hours from receipt of documents (deadline dependent). Urgent reviews available — contact us to discuss.

Employer contribution

Most employers include a contribution to your legal fees in the settlement agreement. We will confirm whether this covers our fee when you send your documents.

Why PDA Law

Why choose PDA Law for settlement agreement advice?

We are employment law solicitors based in Chester, advising employees across England and Wales on settlement agreements. Here is why clients choose us.

Fast Turnaround

Most agreements reviewed and advised on within 24–72 hours. We understand that employer deadlines are real.

Fixed Fees

Clear, transparent pricing from £600 inc VAT. No hidden extras. Fees designed to align with typical employer contributions.

Genuinely Independent

We act for you — not your employer. Our advice is honest, clear and focused on your best interests.

Remote Service

We advise clients across England & Wales. No office visit required. Advice by phone, video call or email.

Employment Law Specialists

Our employment solicitors have extensive experience advising employees on settlement agreements across a wide range of sectors.

Negotiation Experience

Where the offer is not fair, we can negotiate on your behalf. We know what employers will and won't accept.

How the settlement agreement process works

Four simple steps from receiving your agreement to completion — most completed within 24–72 hours.

Send Your Documents

Upload or email your settlement agreement and any relevant correspondence. We will confirm receipt promptly.

We Review & Advise

We review the agreement in full, advise on the terms, explain your rights and options clearly — in plain English.

You Decide

Sign as offered, instruct us to negotiate improvements, or take a different route — the decision is always yours.

Certificate Signed

We sign the independent adviser certificate, the agreement becomes legally binding and you move forward.

Glossary

Key settlement agreement terms explained

Settlement agreements contain legal terminology that can be confusing. Here are the key terms you are likely to encounter and what they mean.

Independent Legal Advice

A legal requirement for a settlement agreement to be valid. The adviser must be independent of your employer and must advise you specifically on the terms and effect of the agreement.

Adviser Certificate

The document signed by your solicitor confirming they have provided independent legal advice. Without this certificate, the settlement agreement is not legally binding.

Waiver of Claims

The part of the agreement where you agree not to bring specified employment tribunal claims. The claims must be individually identified — a blanket waiver of all claims is not enforceable.

Post-Termination Restrictions

Clauses that limit what you can do after leaving — such as working for competitors or contacting clients. We review these carefully to ensure they are reasonable and proportionate.

Ex Gratia Payment

A payment made by the employer as a goodwill gesture, not required by law. The first £30,000 of a genuine ex gratia payment is usually tax-free.

Garden Leave

A period during your notice where you remain employed but do not attend work. You continue to receive your salary and benefits but are not required to work.

FAQs

Settlement Agreement — Frequently Asked Questions

Answers to the questions we are most commonly asked about settlement agreements.

Your Solicitor

Your Employment Law Solicitor

Alex Bailey

Solicitor — Commercial Litigation & Employment Law

Employment Law · Commercial LitigationQualified Solicitor · 2007Highest Local Disability Discrimination Award

Alex qualified in 2007 and has extensive experience in employment law across the North West and North Wales — from settlement agreements and unfair dismissal to discrimination claims and Tribunal representation. A career highlight was securing one of the highest disability discrimination awards in the local area.

Call Alex Request a Call Back

Send Us Your Settlement Agreement

Fast turnaround · Fixed fees · Employer contribution often available

Client Testimonials

What Our Clients Say

“I received my settlement agreement on a Friday with a deadline of Monday. Alex reviewed everything over the weekend, explained every clause clearly, and made sure I wasn't signing away more than I should. The employer contribution covered the fee entirely.”

David K.

Settlement agreement — senior manager, Chester

* Names changed to protect client confidentiality. Testimonials reflect genuine client experiences.

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