Settlement Agreement Employee Advice and Next Steps

If you’ve just received a settlement agreement, you may be feeling unsure about what to do next. Most employees have never seen one before, and the combination of legal language, deadlines, and unexpected conversations with HR or managers can create real uncertainty.

Whether you’re searching for “what to do when you get a settlement agreement”, “do I have to sign a settlement agreement today?”, or “can I negotiate a settlement agreement?”, this guide will walk you through everything clearly - from your immediate next steps to how a settlement agreement solicitor can protect your rights.



This moment might feel stressful, but you’re not alone - and you have far more control than it may seem.

A common fear is that once you’ve received a settlement agreement, you must sign it straight away.

You don’t.

Under UK law:

• You must receive independent legal advice on a settlement agreement before signing.
• You are entitled to time to review it.
• You cannot legally sign it without a solicitor confirming your rights.
• Employers expect you to seek professional settlement agreement advice.
• Deadlines can usually be moved - often by a solicitor with one simple email.

If you’re feeling pressure or uncertainty, pause. You have rights, choices and time.

You can also read our full guide to Settlement Agreements to understand the key protections they offer before you sign.

A settlement agreement is a legally binding contract that sets out:

• What payments your employer is offering
• What claims you agree not to pursue
• How your employment will end
• Your notice arrangements
• Your reference
• Confidentiality clauses
• Any non-disparagement wording
• Any restrictions on your future employment

Receiving a settlement agreement does not mean you’ve done anything wrong.

It simply means your employer wants closure and certainty - and the law ensures you can only sign once you’ve had specialist settlement agreement advice to protect your employee rights.



If you want a clearer overview of the advantages, our guide on the benefits of settlement agreements for employees breaks it down simply.

The first two days after receiving a settlement agreement are important. Following these steps keeps your position safe and opens the door to negotiation if needed.

1. Take a moment before replying

You don’t need to respond in detail. A simple message such as: “Thank you - I’ll be taking independent legal advice and will come back to you.” keeps things calm and avoids accidental commitments.

2. Don’t sign or negotiate yet

A settlement agreement becomes final the moment it’s signed. Delaying signature allows you to understand the full implications, the fairness of the offer, and your employee rights.

3. Don’t resign

Employees often search “should I resign before signing a settlement agreement?” The answer is no. Resigning can reduce your leverage and affect certain entitlements.

4. Gather relevant documents

Your contract, emails, payslips and company policies help a solicitor quickly assess whether your settlement agreement offer is correct and complete.

5. Speak to a specialist settlement agreement solicitor

This is more than a legal requirement. A solicitor can tell you whether the offer is fair, whether your employer has followed proper process, whether you have potential claims, and whether the agreement can be improved.

Speaking to an experienced specialist employment law solicitor ensures you’re fully informed before taking any action.

Before taking any action, it’s helpful to understand what to check before you sign a settlement agreement, so nothing important is missed.

Many people search “can I negotiate a settlement agreement?” The answer is almost always yes.

Employers typically expect negotiation - especially when a solicitor becomes involved.

Areas that can often be improved include:

• Compensation
• Notice pay
• Bonus or commission owed
• Annual leave pay
• Tax treatment
• The agreed reference
• Announcement wording
• Confidentiality and non-disparagement clauses
• Restrictive covenants
• Employer contribution to legal fees

A solicitor can negotiate calmly, professionally, and without damaging the relationship with your employer.

Knowing how to negotiate a Settlement Agreement is an important part of the advice our specialist Employment Law Solicitors provide.

For practical advice on improving your terms, you can also read our guide on how to negotiate a settlement agreement, which explains some of the key points employees may want to consider before agreeing to changes.

A specialist solicitor plays a crucial role in ensuring your settlement agreement is fair, lawful and complete.

Here’s how our Specialist Employment Law team supports you:

Reviews the financial package

Settlement agreements sometimes omit payments you're entitled to, such as notice pay, holiday pay, bonuses or commission. Our Specialist Employment Law team checks everything thoroughly.

Ensures your employee rights are protected

A settlement agreement usually waives claims like unfair dismissal or discrimination. Our Specialist Employment Law team ensures you understand exactly what you’re giving up and whether the offer properly reflects your rights.

Improves clauses that affect your future

Your reference, confidentiality terms and post-employment restrictions can be negotiated to ensure they don’t harm future job prospects.

Negotiates better terms when needed

If the offer is low or terms are unbalanced, our Specialist Employment Law team negotiated for improvements - calmly and professionally.

Guides you clearly through the process

Settlement agreements feel overwhelming to many employees. Our Specialist Employment Law team explains every part clearly so you feel confident, informed and in control.

These mistakes can weaken your negotiating position or cause unnecessary stress.

Knowing them helps you avoid them:

Signing too quickly

Once you sign, the agreement is legally binding and cannot be changed.

Believing the employer’s first offer is final

It rarely is. Negotiation is part of the process - especially with legal representation.

Talking to colleagues

Settlement agreements often include confidentiality obligations. Sharing information internally can complicate matters.

Sending emotional messages

Understandable - but unhelpful. A calm, neutral approach keeps your position strong.

Waiting too long to get settlement agreement advice

Early legal advice protects your rights and allows time for negotiation.

If you’re unsure what you can or can’t talk about, our detailed guide on confidentiality and non-disclosure clauses explains everything clearly.

Employees regularly choose Ellis Hass Solicitors for settlement agreement advice because:

• We specialise in employee-focused settlement agreements
• We act quickly and keep communication clear at every stage
• Employers usually pay the legal fees
• Our approach is calm, personal and supportive
• We explain everything in plain English
• We negotiate professionally and effectively
• Our clients value our kindness, clarity and expertise

You deserve someone who genuinely understands settlement agreements - and genuinely cares about your outcome.

If you’ve received a Settlement Agreement and you’re unsure what to do next, speaking to a specialist can make the process feel more manageable.

Our specialist Employment Law Solicitors advise employees on Settlement Agreements every day. They can explain your position, help you understand your rights and talk you through the options available to you.

Your advice call will be:

• Confidential
• Supportive
• Focused on your rights and options
• Designed to help you feel informed and more confident about your next steps

If you would like confidential Settlement Agreement advice, contact our Employment Law Team to arrange an initial advice call.

Arrange an initial advice call and speak with a specialist Employment Law Solicitor about your Settlement Agreement.