Independent Settlement Agreement Advice for Employees

Settlement agreements are often used where an employment relationship is ending by agreement, whether following redundancy, restructuring, a negotiated departure, workplace concerns or a senior employee exit.

In many cases, the employer has already prepared the agreement before the employee seeks advice. However, the agreement cannot simply be signed as a matter of administration.



The employee must have the opportunity to understand the legal effect of the document.

This includes understanding:

● what payments are being made
● how notice, holiday pay and other contractual sums are dealt with
● what claims or rights may be waived
● what confidentiality obligations apply
● whether any reference wording has been agreed
● what restrictions may continue after employment ends
● what signing the agreement means in practice

For employers, a clear advice process can help avoid confusion at the final stage. The employee is able to ask questions, understand the agreement and make an informed decision.

Where Ellis Hass advises an employee on a settlement agreement, our client is the employee.

We do not advise the employer on the same agreement. Our role is to provide independent legal advice to the employee, explain the terms clearly and ensure they understand the effect of signing before they make their own decision.

This independence is essential.

It protects the integrity of the process and gives the employee confidence that the advice they receive is genuinely theirs. It also gives employers reassurance that the agreement has not been treated as a formality, but has been reviewed by an independent employment solicitor.

Employers can provide our details to employees as an option for settlement agreement advice, provided the employee remains free to choose their own independent adviser.

A suitable way to explain this to an employee may be:

“You may contact Ellis Hass for independent settlement agreement advice if you would like to do so. You are also free to choose another independent adviser.”

This keeps the process clear and preserves the employee’s choice.

Employers do not need the employee’s advice stage to become unnecessarily complicated. However, it must still be handled properly.

When employees are uncertain about who to contact, what documents are needed or what the agreement means, the final stage can take longer than expected. Clear independent advice helps reduce that uncertainty.

An experienced employee-side settlement agreement solicitor can:

● review the agreement before advice is given
● explain the terms in plain English
● answer the employee’s questions
● identify any points that require clarification
● explain the effect of signing
● complete the adviser certificate where appropriate

For employers, this provides a clear and professional route for the employee to obtain the advice they need.

It does not remove the employee’s right to ask questions or seek clarification. Instead, it ensures those questions are addressed in an informed and measured way.

Although the details vary from case to case, the process usually follows a straightforward sequence.

The independent advice stage is usually more straightforward when the employee has been given all relevant documents and information at the outset.

Employers can help by ensuring the employee has:

● the full draft settlement agreement
● any schedules or annexes
● the adviser certificate wording
● the proposed termination date
● the payment breakdown
● details of salary, holiday pay, notice pay or PILON
● the compensation payment being offered
● the employer’s contribution towards legal fees
● any agreed reference wording
● any confidentiality or announcement wording
● any relevant post-termination restrictions
● contact details for returning signed documents
● any proposed deadline for signing

Where key information is missing, the employee may not be able to receive complete advice straight away. This can lead to further questions and unnecessary delay.

Providing clear information at the beginning helps the advice process proceed more efficiently and gives the employee greater confidence in the documents they are being asked to consider.

Most delays at this stage are practical rather than contentious.

The employee may not have the complete agreement. The legal fee contribution may be unclear. The payment breakdown may not match previous discussions. The adviser certificate may be missing, or the agreement may contain terms that require further explanation.

Common issues include:

● unclear payment dates
● no stated contribution to legal advice fees
● inconsistent termination dates
● uncertainty around notice or PILON
● missing holiday pay details
● unclear tax wording
● missing adviser certificate wording
● unclear reference or announcement wording
● changes being made after advice has already begun
● deadlines that do not allow enough time for proper review

These issues can usually be resolved, but they are easier to avoid where the agreement and supporting information are prepared clearly from the outset.

For employers, this is one of the reasons to have a reliable independent solicitor employees can contact. It helps make the final advice stage more predictable and professionally managed.

Some employers only need an independent employee solicitor occasionally. Others use settlement agreements more regularly as part of redundancies, restructures, negotiated exits or senior departures.

In either case, it can be helpful to have a trusted solicitor employees can contact for independent advice.

This does not mean the solicitor acts for the employer. The employee remains the client, and the advice remains independent.

However, employers often value having a clear option they can give to employees, particularly where they want the process to be handled with professionalism, clarity and care.

Ellis Hass can advise employees on settlement agreements involving:

● redundancy exits
● senior employee departures
● negotiated terminations
● corporate restructuring
● performance-related exits
● workplace disputes
● confidential exits
● agreements involving references, restrictions or announcements



Each employee is advised independently and on their own circumstances.

Employers refer employees to Ellis Hass because they want the independent advice stage to be handled by an experienced employment solicitor.

Jane Ellis has over 30 years’ experience in employment law, including advising on settlement agreements. Her approach is clear, practical and measured.

Employees are given the opportunity to understand the agreement properly, ask questions and consider the effect of signing. Advice is provided in plain English, without making the process more difficult or stressful than it needs to be.

Employees benefit from:

● independent legal advice
● clear explanation of the agreement
● guidance on payments, notice and termination terms
● advice on the rights or claims being waived
● explanation of confidentiality, references and restrictions
● adviser certificate completion where appropriate

Employers benefit from knowing the employee has had access to experienced, independent advice and that the advice stage is being handled carefully.



This can support a more professional conclusion to the employment relationship.

If you are an employer preparing a settlement agreement and your employee needs independent legal advice, Ellis Hass can help.

We provide clear, practical advice to employees so they understand the terms and effect of the agreement before deciding whether to sign.

We act for the employee, not the employer. However, our experience, clarity and professional approach can help ensure the independent advice stage is handled carefully and efficiently.



If you would like to provide your employee with details of an independent settlement agreement solicitor, Ellis Hass offers experienced support from initial review through to adviser certificate completion where appropriate.