Why legal advice is crucial before signing a settlement agreement

by Kidd Rapinet on July 23, 2025
Dispute Resolution

You’ve been offered a settlement agreement. It might seem straightforward — a payment in exchange for signing on the dotted line. But before you pick up the pen, there’s one thing you must do: get legal advice.

A valid settlement agreement requires legal advice

You can’t sign a valid settlement agreement without getting independent legal advice. It’s not just a formality — it’s there to protect you.

Understand what you are giving up

By signing, you’re usually waiving your right to bring claims against your employer — including unfair dismissal, discrimination, or breach of contract.

Make sure the settlement agreement deal is fair

– Review the financial offer

– Spot any hidden clauses

– Help you negotiate better terms

– Ensure your rights are protected

What a solicitor will cover for you with a settlement agreement

– Are the terms clear and fair?

– Are you waiving any important rights?

– Is the payment tax-efficient?

– Are there any post-employment restrictions?

– Is the reference wording agreed?

FAQs

Who pays for the legal advice? Usually, your employer will contribute to the cost — often between £350 and £500+VAT.

Can I negotiate the terms? Yes — and a solicitor can help you do it effectively.

What if I don’t take advice? The agreement won’t be legally binding — and you could miss out on a better deal.

This article was brought to you by Stuart Angel from our Canary Wharf office. You can book an appointment with Stuart using the form provided or you can reach him via email sangel@kiddrapinet.co.uk or by calling 020 7205 2115

These materials and content have been prepared for the benefit of their viewers/readers. They are intended for marketing purposes only and are of a general nature and do not constitute legal advice applicable to any particular facts or circumstances. Kidd Rapinet LLP and/or the author(s) accept no duty of care, responsibility or liability for any loss or damage which you or any third party may suffer as a result of any reliance or use by you or them of these marketing materials and content, except to the extent it is not legally possible to exclude such liability. If you require legal advice on your own situation, please contact us so we can discuss how we may assist.

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