If you’ve been asked to sign a settlement agreement

A settlement agreement is a legally binding agreement between you and your employer. You might be asked to sign one if you are being made redundant, or if you are leaving your job for complicated reasons. Settlement agreements are written by lawyers, and the language is often difficult to understand and could be confusing. You need to make sure you know what rights you’re giving up when you sign one.

You need to take legal advice before you sign

For a settlement agreement to be binding, you must take legal advice about it first. That’s because when you sign an agreement you are giving up the right to make a future claim against your employer. Your employer will normally pay for the cost of you getting legal advice.

How we can help

You do not need to be a Which? member to use our settlement agreement service.

We’ll review your settlement agreement and check you understand it. If you’re happy with the content, we can give you a certificate to confirm you’ve taken legal advice. You may decide you don’t want to sign the agreement. Perhaps you’re not happy with how you’ve been treated, or with the amount of money, you’re being offered. There is a set fee for this service, which is usually reimbursed by your employer.

If you’re a member of the Which? legal advice service, we can also talk to you about your potential claim and any other options you might have so that you can make an informed decision.

We’ll:

• read your settlement agreement
• check you understand it
• advise you on your options