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Before you sign

Settlement Agreements for Employees

If your employer has offered you a settlement agreement, you do not have to make an immediate decision. Our employment solicitors in Cheltenham can explain your options, the time you should be given and what signing—or deciding not to sign—could mean for your employment rights.

Employee discussing a settlement agreement with an employment solicitor

Confidential enquiry

Request a Call Back

Leave your details and a member of our team will contact you.

Your information will be handled confidentially. Sending this form does not create a solicitor-client relationship.

Client feedback

“The team were professional, clear and attentive throughout. Everything was explained in a way that was easy to understand, and I always knew what was happening next.”

After receiving an offer

What Should You Do After Receiving a Settlement Agreement?

Receiving a settlement agreement does not mean that you must accept it or sign it immediately. Take time to read the offer, note any deadline set by your employer and avoid making a decision based only on the headline compensation figure.

Keep the complete agreement and any covering letter or email sent with it. Your employment contract, recent payslips and relevant correspondence may also help your solicitor understand the payments and circumstances surrounding the offer.

  • Record the date the agreement was received and the deadline given
  • Keep the complete agreement and the employer’s covering correspondence
  • Gather your employment contract, recent payslips and relevant documents
  • Write down any questions or clauses you do not understand
  • Obtain independent advice before signing or returning the agreement
Employee considering the next steps after receiving a settlement agreement
Employee discussing the available options before signing an agreement

Before making a decision

Your Options After Receiving an Offer

A settlement agreement is voluntary. You can consider the proposed terms, ask your employer questions and obtain independent advice before deciding how to respond.

Your employment solicitor can explain the effect of each option and help you understand the possible consequences. If a payment, deadline or clause requires further attention, you can decide if you want to ask your employer to reconsider it.

  • Accept the proposed terms after receiving independent advice
  • Decline the offer and continue with the existing employment position
  • Ask questions about payments, wording or practical arrangements
  • Request additional time to consider the written agreement
  • Ask for particular terms to be reconsidered before you decide

Appointments are available with our employment solicitors at Calderwood House in Cheltenham, by telephone or by video call.

Questions before signing

Settlement Agreement Questions for Employees

Do I Have to Accept the Initial Offer?

No. A settlement agreement is voluntary, and you are not required to accept the first offer made by your employer. You can decline it, ask questions, request additional time or ask for particular terms to be reconsidered before deciding how to respond.

How Long Should I Be Given to Consider the Agreement?

You should be given a reasonable amount of time to consider the formal written terms and obtain independent advice. As a general rule, the Acas Code recommends allowing at least 10 calendar days, unless the parties agree otherwise. A different period may be appropriate depending on the circumstances.

Why Do I Need Independent Legal Advice?

To validly settle the statutory employment claims identified in the document, you must receive advice from a relevant independent adviser. Your solicitor will explain the effect of the agreement, the rights you will give up and the obligations that may continue after your employment ends.

Can My Employer Withdraw the Offer?

An employer may be able to withdraw or change an offer before the settlement agreement has been signed and has become binding. Do not assume that an offer will remain available indefinitely. If you are interested in the proposal but need more time or information, respond promptly and obtain advice.

Can I Continue Working After Receiving an Offer?

Receiving a settlement proposal does not automatically bring your employment to an end. Unless your employment has been terminated separately or you have been told not to attend work, you will usually remain employed and should continue following your normal contractual duties while the offer is considered.

What Happens If I Do Not Sign the Agreement?

If you do not sign, the settlement agreement will not take effect and you will not give up the claims identified in it. Your employer may allow the offer to lapse, continue with an existing redundancy, disciplinary or capability process, or take another lawful step. The possible outcome will depend on the circumstances surrounding the offer.

Confidential initial enquiry

Request a Confidential Call Back

Tell us when you received the offer, the deadline your employer has given you and the best time to contact you. You do not need to upload your agreement before speaking with our team.

Your information will be handled confidentially. Sending this form does not create a solicitor-client relationship.