Settlement Agreement After Corporate Redundancy 

Once redundancy has been confirmed, employers are often keen to bring matters to a clean and legally certain conclusion.

From an employee’s perspective, this can feel abrupt - particularly when you are still coming to terms with the redundancy itself.

A settlement agreement allows the employer to draw a line under the employment relationship.

In exchange for compensation, the agreement gives them certainty that no legal claims will be brought later. That is why settlement agreements are commonly introduced after redundancy has been confirmed, rather than before.

For you as the employee, this context matters.

The fact that a settlement agreement has been offered usually means the employer is managing risk, not simply completing paperwork. That, in turn, can indicate that there may be scope to question or clarify terms - particularly where pay, notice, or the rights being waived are concerned.

Understanding why the agreement is being offered helps you see it for what it is: not just an administrative step, but a legal agreement designed to achieve finality.

Recognising that purpose puts you in a stronger position to protect yourself, rather than assuming the terms are fixed or non-negotiable.

For more on what's covered in a Settlement Agreement, read our guide: What’s Usually Covered in a Settlement Agreement (UK): The Complete Employee Guide

It’s very common for employees to assume that once redundancy has been confirmed, the settlement agreement they receive represents a final, take-it-or-leave-it position. In practice, that is not always the case.

Settlement agreements are often drafted at speed and based on assumptions that may not fully reflect your individual circumstances. Details such as termination dates, notice arrangements, compensation levels and references are frequently included as a starting point rather than a settled outcome.

What matters is understanding which parts of the agreement are genuinely fixed, and which may still be open to discussion.

Many employees only realise there was room to raise questions or seek changes after the agreement has already been signed - when it is usually too late to do so.

Seeing the offer as a proposal rather than a formality allows you to approach it with greater confidence.

That doesn’t mean creating conflict; it means ensuring the agreement accurately reflects your position and protects your interests at a point when decisions quickly become final.

Employees also find our guide on Negotiating A Settlement Agreement helpful: How to Negotiate a Settlement Agreement: Jane Ellis’ Tips for Employees

After redundancy, one of the first things most employees look at is the overall figure being offered. That’s completely understandable - financial security is often the most immediate concern at this point.

What’s easy to overlook is that a settlement agreement rarely provides a single, straightforward payment.

Instead, it usually sets out several different elements, each treated differently and often paid at different times.

These can include salary to your termination date, notice pay or payment in lieu of notice, redundancy pay, accrued holiday pay and an additional compensation payment.

The way these payments are structured matters. Different elements can be treated differently for tax purposes, and the settlement agreement wording will usually fix how each payment is categorised. Once agreed, this structure is very difficult to change.

For corporate employees, this is often where misunderstandings arise.

Focusing only on the headline amount can mean missing how the money will actually be paid, when it will be received, and how much will ultimately reach you. Understanding the structure before you sign is a key part of protecting your financial position after redundancy.

Signing a settlement agreement usually means agreeing not to bring certain legal claims against your employer. This is a fundamental part of the agreement, and it is why compensation is offered in the first place.

For employees, particularly those in corporate roles, it can be uncomfortable to think in terms of legal claims at a time when redundancy has already been confirmed.

However, the rights being waived can include unfair dismissal, discrimination, breach of contract and other employment-related claims.

What matters is not just knowing that rights are being waived, but understanding which rights and what value they may have had. Once a settlement agreement is signed, those rights are usually lost permanently, even if new information comes to light later.

This is one of the clearest areas where protection matters. Understanding the scope and finality of what you are giving up helps ensure that the compensation offered genuinely reflects the position you are being asked to accept.

Need to understand more about your rights in a Settlement Agreement, read: What Are My Rights in a Settlement Agreement? Unfair Dismissal & Legal Rights Explained (UK)

After redundancy, it’s easy to assume that dates and notice arrangements are already fixed. In practice, the settlement agreement often formalises - and sometimes alters - how and when your employment ends.

The agreement will usually specify your termination date and how notice is dealt with, including whether notice is worked or paid in lieu. These details can affect pay, benefits, bonus entitlement and even how your departure is perceived externally.

Because these terms are often agreed quickly, employees sometimes sign without fully appreciating their wider impact.

Once included in a signed settlement agreement, termination dates and notice arrangements are among the hardest terms to change.



Taking time to understand what is being fixed at this stage helps you avoid locking yourself into outcomes that don’t properly reflect your circumstances or expectations.

After redundancy, many employees feel pressure to bring the situation to an end. That pressure can lead to understandable but avoidable mistakes.

Common examples include accepting payment figures without checking how they are broken down, assuming tax treatment will be straightforward, or believing that terms can be revisited later if needed.

Others delay seeking advice because they feel the redundancy decision itself is already settled.

The impact of these mistakes is often only felt later - in reduced take-home pay, lost flexibility, or the realisation that rights have been waived without full understanding. By that point, the settlement agreement has usually made those outcomes final.



Recognising these risks early helps you slow the process down just enough to protect yourself, without creating unnecessary conflict or delay.

Independent legal advice is a legal requirement for a settlement agreement to be binding, but its real value lies in protection rather than compliance.

At this stage, advice can help you understand what rights you are being asked to waive, whether the compensation reflects your position, and which terms are genuinely fixed versus open to discussion. This is particularly important after redundancy, when decisions are often made quickly and under emotional strain.



For many corporate employees, advice provides reassurance as much as leverage. It allows you to move forward knowing that the agreement you sign reflects informed choices rather than pressure or assumption.

When redundancy has already happened and a settlement agreement is on the table, experience matters.

Ellis Hass acts exclusively for employees, advising corporate professionals at the point where decisions carry long-term consequences.

Jane Ellis brings over 30 years’ experience in employment law, with a particular focus on settlement agreements.

Clients value the firm’s clear, practical advice, its focus on protecting employee rights, and its ability to explain complex legal issues in straightforward terms at a stressful time.

This approach helps ensure that employees understand their position fully before committing to an agreement that is usually final.

Being made redundant and asked to sign a settlement agreement can feel like the final step in a process that’s already out of your control. But the agreement you’re being asked to sign now has long-term consequences - for your pay, your employment rights and your future options.

If you’re unsure whether the terms are fair, concerned about the rights you’re being asked to waive, or simply want to be confident that you’re protecting yourself before committing, you don’t have to navigate this decision alone.

At Ellis Hass Solicitors, we act exclusively for employees. Jane Ellis, our specialist settlement agreement solicitor, has over 30 years’ experience advising corporate professionals at the point redundancy decisions become final.

She will explain the agreement in plain English, assess whether the compensation reflects your position, and identify where terms may be questioned or clarified before you sign.

Most employers contribute towards the cost of independent legal advice, and we offer a free initial discussion, allowing you to get clear, practical guidance without pressure or upfront cost.

If you’ve been made redundant and given a settlement agreement, speaking to a specialist early can help you protect your position and move forward with confidence - rather than discovering too late that something important was fixed before you fully understood the impact.