Do I legally need a solicitor for a settlement agreement?

Yes. By law (s.203 ERA 1996), a settlement agreement isn't binding unless the employee has received independent legal advice on the terms from a qualified adviser. Without that advice, the waiver of claims doesn't apply and either side could later challenge it. The adviser must be named in the agreement, must have insurance, and must confirm the advice was given.

How much does a solicitor cost?

Standard contributions paid by the employer are £350-£750 + VAT for a routine agreement. More complex cases (senior roles, discrimination claims, large packages) often need £1,000-£3,000+. If the employer's contribution doesn't cover everything, the solicitor will tell you upfront whether you'll need to top up.

Can the employer choose my solicitor?

No. The advice has to be independent. The employer often suggests a panel of firms they regularly work with (and will pay the contribution to any of them), but you can choose any qualified solicitor, employment-law adviser, certified trade union official, or advice centre worker who meets the s.203 requirements.

What does the solicitor actually do?

Three things: explain the legal effect of the agreement (in particular what claims you're waiving and what continuing obligations you're accepting); spot anything missing or unusual (reference wording, restrictive covenants, tax treatment, pension); and advise on whether the offer is reasonable and whether to negotiate. They'll then sign the adviser's certificate that makes the agreement binding.

Do I Need a Solicitor for a Settlement Agreement? (UK 2026)

Why the statutory requirement exists

Settlement agreements waive an employee’s right to bring most types of claim. That’s a significant concession and Parliament wanted to make sure employees weren’t signing it away without understanding the effect. So section 203 of the Employment Rights Act 1996 (and equivalent provisions in other employment statutes) makes such waivers unenforceable unless several conditions are met, one of which is independent legal advice.

The legal advice serves a protective function: the adviser confirms in writing that they’ve explained the terms and the effect, the employer gets certainty that the waiver will hold up, and the employee gets professional input on a consequential document.

Who counts as a qualified adviser

The statutory list of qualifying advisers includes: practising solicitors, barristers, legal executives, certified trade union officials (when acting in that capacity for a member), and certified advisers at advice centres. Most settlement agreements in practice are advised on by employment-specialist solicitors because the work is niche and the rules technical.

The adviser must hold professional indemnity insurance covering settlement-agreement work, must be named in the agreement, and must sign an adviser’s certificate confirming the advice has been given. Without that certificate, the agreement is invalid as a settlement.

Typical costs and who pays

Employers almost always offer a contribution toward the employee’s legal fees. Standard contributions for a routine agreement are £350-£750 plus VAT; more complex cases (discrimination claims, packages over £100k, senior or regulated roles) often see contributions of £1,000-£3,000+.

The contribution is paid directly from the employer to the solicitor. From your perspective the advice is usually free at the point of use, as long as the cost stays within the agreed contribution. If the work needed exceeds the contribution, the solicitor should tell you upfront whether you’ll need to top up.

How to find a solicitor

Three routes. First, ask the employer if they have a panel of firms they regularly work with. Many do, and a panel firm will know the employer’s usual approach and may move faster. Second, use a directory like The Law Society of England & Wales “Find a Solicitor” filter for employment law. Third, ask in your professional network; word-of-mouth recommendations for settlement work are common and reliable.

A short scoping call is the easiest way to confirm whether a firm is the right fit. Ask about their settlement-agreement fee, whether they handle negotiation if needed, and their typical turnaround time. A reputable employment solicitor will give you a clear answer on cost and process within ten minutes.

What the advice meeting looks like

Most settlement-agreement advice is given remotely (video or phone). Expect a 45-90 minute discussion covering: the background to the exit, the financial breakdown of the offer, the claims being waived (in plain English), the continuing obligations (restrictive covenants, confidentiality, non-disparagement), the reference wording, and the tax treatment. The solicitor will give you a view on whether the offer is reasonable and on what’s typically negotiable.

If you choose to negotiate, the solicitor will handle the back-and-forth with the employer’s side. If you accept the terms, you sign the agreement, the solicitor signs the certificate, and the agreement becomes binding once countersigned by the employer.

Frequently asked questions

Do I legally need a solicitor for a settlement agreement?: Yes. By law (s.203 ERA 1996), a settlement agreement isn't binding unless the employee has received independent legal advice on the terms from a qualified adviser. Without that advice, the waiver of claims doesn't apply and either side could later challenge it. The adviser must be named in the agreement, must have insurance, and must confirm the advice was given.
How much does a solicitor cost?: Standard contributions paid by the employer are £350-£750 + VAT for a routine agreement. More complex cases (senior roles, discrimination claims, large packages) often need £1,000-£3,000+. If the employer's contribution doesn't cover everything, the solicitor will tell you upfront whether you'll need to top up.
Can the employer choose my solicitor?: No. The advice has to be independent. The employer often suggests a panel of firms they regularly work with (and will pay the contribution to any of them), but you can choose any qualified solicitor, employment-law adviser, certified trade union official, or advice centre worker who meets the s.203 requirements.
What does the solicitor actually do?: Three things: explain the legal effect of the agreement (in particular what claims you're waiving and what continuing obligations you're accepting); spot anything missing or unusual (reference wording, restrictive covenants, tax treatment, pension); and advise on whether the offer is reasonable and whether to negotiate. They'll then sign the adviser's certificate that makes the agreement binding.

General information, not legal advice. For your specific situation, contact ACAS or an employment-law solicitor.

Do I need a solicitor for a settlement agreement?