Do I legally need a solicitor for a settlement agreement?

Yes. A settlement agreement is only legally valid if you've received independent legal advice from a qualified solicitor, barrister, or certified trade union adviser. Without this, the agreement can't be enforced against you.

Does my employer pay for the solicitor?

Yes. Your employer is required to make a contribution towards your legal fees. The typical amount is £250 to £500 plus VAT. If your situation is complicated, you can ask the solicitor upfront whether this will be enough to cover their work.

Can I choose my own solicitor?

Yes. Your employer may suggest one, but you should choose your own. The solicitor needs to be independent, meaning they work for you, not your employer. Using your employer's suggested solicitor can create a conflict of interest.

Do I Need a Solicitor for a Settlement Agreement?

Here's a rare bit of good news in the redundancy process: you get a free solicitor. Well, your employer pays for one. Same thing.

Yes, you need a solicitor. It's not optional. A settlement agreement is only legally binding if you've had independent legal advice. And your employer has to pay for it.

This is one of the most important things people don't know when they're handed a settlement agreement. You're not just entitled to a solicitor. It's a legal requirement for the agreement to be valid. And it doesn't cost you anything.

Why a solicitor is required

Under ERA 1996, s.203, a settlement agreement (previously called a compromise agreement) only works if:

The agreement is in writing
It relates to specific complaints or proceedings
You've received advice from a relevant independent adviser (usually a solicitor)
The adviser has professional indemnity insurance
The agreement identifies the adviser

Without these conditions being met, the agreement isn't valid. That means you wouldn't actually be giving up your rights, and your employer wouldn't have the certainty they're paying for.

Your employer knows this. It's why they'll always agree to pay for your legal advice. They need you to have it for the agreement to work.

What the solicitor actually does

The solicitor's job is to explain the agreement to you in plain English and make sure you understand what you're signing. Specifically, they'll:

Explain what claims you're giving up. The agreement will contain a long list of legal claims you're waiving. The solicitor will go through each one, tell you which ones are relevant to your situation, and flag any that you should think carefully about.

Check the money. They'll look at whether the financial package is reasonable given your circumstances. They'll check your statutory entitlement, the tax breakdown, and whether anything is missing (like holiday pay or bonus).

Review the terms. Non-compete clauses, confidentiality restrictions, the agreed reference wording, payment dates, what happens to your benefits. A good solicitor will flag anything unusual or unfavourable.

Advise whether to sign. Based on everything they've seen, they'll give you their honest opinion on whether the deal is fair or whether you should push for more.

Sign a certificate. Once they've given you advice, they'll sign a certificate confirming they've done so. This certificate is attached to the agreement and is what makes it legally valid.

How much does it cost?

It doesn't cost you anything. Your employer pays.

The standard employer contribution is £250 to £500 plus VAT. This is usually enough for the solicitor to review the agreement, advise you, and sign the certificate.

If your situation is more complicated (for example, you have a strong discrimination claim or the agreement has unusual terms), the work might cost more than the employer's contribution. In that case, you have two options:

Ask your employer to increase their contribution. They'll sometimes agree, especially if they want this settled quickly.
Pay the difference yourself. It might be worth it if the solicitor's advice helps you negotiate thousands more.

Either way, always ask the solicitor upfront what they'll charge and whether the employer's contribution will cover it.

How to find a solicitor

Choose your own. Your employer might suggest a solicitor. Be cautious about using them. The solicitor needs to be genuinely independent, meaning they advise you, not your employer. If the same firm regularly does work for your employer, that's a potential conflict of interest.

Look for an employment law specialist. You want someone who does settlement agreements regularly, not a general practice solicitor who occasionally handles employment matters.

Ask about turnaround time. You usually have a deadline to sign the agreement. Make sure the solicitor can review it and advise you in time.

Check what's included. Some solicitors will only do the bare minimum: review the agreement and sign the certificate. Others will also advise you on negotiation, help you draft a counter-proposal, or handle the back-and-forth with your employer. Ask what you're getting for the fee.

How to make the most of it

Don't treat this as a box-ticking exercise. You're getting free access to a professional who can genuinely help you.

Send them everything. The agreement itself, any correspondence about the redundancy, your contract, and a summary of what happened. The more context they have, the better their advice.

Ask specific questions. "Is this fair?" is a good start, but also ask: "Is there anything I should push back on? Is the tax breakdown correct? Are these non-compete restrictions enforceable? What would a tribunal likely award in my situation?"

Ask whether it's worth negotiating. A good employment solicitor will tell you honestly whether there's room to get more or whether you're already at a fair number.

Don't rush. You typically have at least 10 calendar days to consider a settlement agreement (Acas recommends this as good practice). Use the time. Get the advice. Make a decision you're comfortable with.

This article is general guidance about UK redundancy rights. It's not legal advice and shouldn't be treated as a substitute for advice from a qualified employment solicitor.