Settlement agreement guides
Plain-English answers to the questions almost everyone asks when they're first handed a settlement agreement. From the basics through to the fine print.
What is a settlement agreement?
The basics: what it is, why it exists, and what makes it legally binding.
Read more →Facing redundancy? What happens first
Consultation, selection criteria, and what to do before any settlement is offered.
Read more →How much compensation should I get?
What genuinely moves your figure up or down, and how to sense-check an offer.
Read more →How long do I have to decide?
What ACAS recommends, and what to do if you're being rushed.
Read more →Can I refuse to sign?
What actually happens if you say no. And when that makes sense.
Read more →Talking to your employer
What to say, what to avoid, and how to protect your position in writing.
Read more →Choosing a solicitor & getting paid
Why the choice of solicitor is yours, and when your settlement is actually paid.
Read more →Who pays the solicitor fee?
Why your employer almost always covers your legal advice.
Read more →Tax on settlement payments
What's tax-free, what isn't, and where people get caught out.
Read more →Can I claim benefits afterwards?
How your payment can affect Universal Credit and other benefits.
Read more →Restrictive covenants explained
Non-compete and non-solicit clauses. And whether they'd actually hold up.
Read more →NDA clauses explained
What a confidentiality clause can and can't stop you doing.
Read more →Without prejudice & protected conversations
What these terms mean, and the important exceptions.
Read more →Redundancy vs settlement agreement
How they differ, and how they usually combine.
Read more →ACAS COT3 vs settlement agreement
Two routes to the same kind of outcome. Reached very differently.
Read more →Official sources
We're not a law firm, and we always encourage checking anything important against the official source. Here's where the government and independent bodies publish their own guidance:
- ACAS. Settlement agreements. The government-funded body's full guidance on settlement agreements, protected conversations and Early Conciliation.
- GOV.UK. Settlement agreements. The official government overview of what a settlement agreement is and how it works in law.
- GOV.UK. Redundancy: your rights. Statutory redundancy pay, consultation rights, and notice entitlements.
- GOV.UK. Employment tribunals. How to bring a claim, time limits, and what to expect if you don't settle.
- Citizens Advice. Settlement agreements. Independent, free guidance aimed at employees, including on benefits and next steps.
- GOV.UK. Tax on redundancy payments. The official position on the £30,000 tax-free threshold and what counts as taxable.
Have a question not covered here? Ask us directly. Or send us your agreement for a review specific to your situation. Or head back to SettlementAgreementGuide.co.uk.