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Have You Received a Settlement Agreement? Don’t Sign It Until You’ve Read This

Published: 09/03/2026
Written by Curwens Solicitors

 When facing potential employment disputes or termination, understanding settlement agreements is crucial. Settlement agreements are legally binding contracts that outline the terms under which an employee agrees to leave their job, often in exchange for compensation.

As part of the process, you also agree to waive a multitude of statutory and contractual rights, including the right to bring claims in the Employment Tribunal or courts. However, under the Employment Rights Act 1996, it is only valid if you receive independent legal advice from a qualified solicitor. That safeguard exists to protect you.

If you have been offered a settlement agreement and need advice quickly, our employment law solicitors at Curwens can review your agreement and explain your options before you sign. Contact our team today by completing our online contact form for prompt, confidential advice.

At Curwens, our Employment Law solicitors specialise in securing the best outcomes for our clients, ensuring that your rights and interests are protected throughout the process.

If you’ve been handed a settlement agreement, the clock may already be ticking.
You might even hear it. You may feel pressured. Be uncertain. Or simply be eager to move on.

But here is the reality: once you sign, you usually cannot go back.

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For legal advice on any of the issues discussed, please call our solicitors today on 0808 175 3879 or complete our online contact form, and we will be in touch with you as soon as possible.

The First Offer Is Rarely the Best Offer 

Employers often present settlement agreements as “standard” or “fair”. In practice, they are typically drafted by the employer’s solicitors and are therefore framed to protect the employer’s interests. They typically deliver a clean break between employer and employee and involve the employee waiving their right to pursue any legal claims against the employer in exchange for a financial settlement.

Our lawyers are experienced in negotiating settlement agreements, and with careful legal review, we frequently improve:

  • Compensation payments
  • Notice and bonus entitlements
  • Tax positioning
  • Restrictive covenants
  • Agreed references
  • Confidentiality terms

We find that even a short negotiation can produce a significantly better outcome - financially and professionally - for our clients.

What Are You Giving Up?

Many employees are surprised by how wide-ranging the waiver of claims can be.

By signing, you may be giving up rights relating to:

  • Unfair dismissal
  • Discrimination
  • Whistleblowing
  • Breach of contract
  • Unpaid wages or holiday

Furthermore, if your employer has mishandled a process, your leverage may be stronger than you realise. The key is understanding your true legal position before agreeing to anything. That’s why you need a specialist employment lawyer to negotiate your settlement agreement.

The Good News: Your Legal Fees Are Usually Covered:

In most cases, your employer contributes towards your legal fees. That means you can obtain expert, independent advice, often at no personal cost.

We make the process simple:

  1. You send us your agreement.
  2. We review it promptly.
  3. We advise you clearly on your options.
  4. If appropriate, we negotiate improvements on your behalf.

No jargon. No unnecessary delay. Just strategic, commercially focused advice.

Why Clients Choose Our Employment Law Team

Settlement agreements are not administrative formalities, they are negotiation documents.

Our specialist solicitors act exclusively in employment law. We understand the tactics employers use and how to respond effectively.

Clients instruct us because we:

  • Act quickly when deadlines are tight
  • Identify negotiation leverage others miss
  • Protect long-term career interests
  • Deliver clear, decisive advice

We operate in full compliance with the professional standards set by the Solicitors Regulation Authority, giving you complete confidence in our guidance.

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Timing Matters - And So Does Strategy 

Deadlines are often designed to create pressure. But pressure does not mean you must accept the first proposal.

A carefully handled negotiation can:

  • Increase your financial package
  • Improve your reference
  • Reduce restrictive covenants
  • Protect your professional reputation

We know that navigating the nuances of a settlement agreement can be overwhelming, because disputes with your employer are emotionally draining. Understanding your rights while dealing with these issues is crucial, and the difference between signing quickly and taking advice can be substantial.

Frequently Asked Questions 

Do I have to sign a settlement agreement?
No. A settlement agreement is voluntary. If you sign it, you usually waive your right to bring claims against your employer in the Employment Tribunal or courts. You should always take independent legal advice before deciding whether to sign.

Do I need a solicitor for a settlement agreement?
Yes. Under the Employment Rights Act 1996, a settlement agreement is only valid if you receive independent legal advice from a qualified solicitor or authorised adviser who explains the terms and the rights you may be giving up.

Can a settlement agreement be negotiated?
Yes. Settlement agreements are often negotiable. A solicitor may be able to improve compensation, adjust restrictive covenants, secure an agreed reference, or clarify confidentiality and other terms before the agreement is signed.

How long do I have to consider a settlement agreement?
Employers usually give around 7–10 days to consider a settlement agreement, although this can vary. If you feel pressured or unsure about the deadline, you should seek legal advice as soon as possible.

What rights do I give up if I sign a settlement agreement?
By signing, you normally waive the right to bring certain legal claims against your employer, such as unfair dismissal, discrimination, breach of contract, whistleblowing, or unpaid wages.

Contact our Employment Law Specialists Today

If you have received a settlement agreement, it is important to obtain legal advice before signing. A solicitor can explain the terms of the agreement, identify potential risks, and negotiate improvements where appropriate.

At Curwens, our employment law team regularly advises employees on settlement agreements and understands how employers structure these documents. We provide clear, practical advice and act quickly when deadlines are tight.

In many cases, your employer will contribute towards your legal fees, meaning you can obtain independent legal advice with little or no personal cost.

If you have been offered a settlement agreement and would like advice, contact our Employment Law team today for a prompt review of your agreement and clear guidance on your options.

Omar Qassim is Head of Employment Law at Curwens. Please feel free to contact him by email This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone on 0808 169 9382 or complete our online contact form to discuss your case.

Please note that our briefings are for informational purposes only, and do not constitute legal advice. 

Please note that our briefings are for informational purposes only, and do not constitute legal advice.

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Any data that you submit using this web form will be held by our firm as Data Controller and will be held securely for 12 months before being securely and confidentially destroyed.
Find out more
Your data will not be disclosed to any third parties without your consent or as otherwise allowed by the relevant Data Protection legislation and will only be used for responding to your query (or purposes associated with that purpose).

You have the right to be informed about what data we hold about you along with other rights set out in the legislation. Further information about your rights under the data protection legislation can be found at www.ico.org.uk

Full details can be found here

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