What a settlement agreement is, and why the law requires advice
A settlement agreement is a contract between you and your employer: you give up your right to bring employment claims (unfair dismissal, discrimination, redundancy disputes and so on), usually in exchange for a payment and an agreed reference. Because you are signing away statutory rights, section 203 of the Employment Rights Act 1996 says the waiver only works if strict conditions are met.
The central condition is independent advice: you must have received advice from a relevant independent adviser, identified in the agreement, on the terms and effect of what you are signing, and the adviser must carry professional insurance. No advice, no valid agreement: without the adviser's certificate your employer's solicitors will not complete, and the settlement payment does not get paid.
Who pays, and what the contribution covers
Although the legal duty to take advice sits with you, the near-universal convention is that the employer pays a fixed contribution towards it, typically £350 to £500 plus VAT, stated in the agreement itself. Most solicitors will do the standard "terms and effect" advice within that contribution, so a straightforward case costs you nothing.
The contribution covers advising you on what the agreement means. If you want the solicitor to go further, negotiate the figure, challenge a restrictive covenant, argue over the reference, that is extra work and usually billed beyond the contribution, so agree the scope up front.
What happens in the appointment
The solicitor reads the agreement (and ideally your employment contract and any offer letter) before you meet. In the appointment, usually 30 to 60 minutes by video call, they explain what you are giving up, what you are getting, the tax treatment of the payments, any restrictive covenants and confidentiality clauses, and whether anything in the deal looks off-market for your situation.
Once you confirm you understand and want to proceed, the solicitor signs the adviser's certificate, the signed agreement goes back to your employer's solicitors, and the timetable in the agreement (payment dates, leaving date, reference) takes over. On a straightforward agreement the whole process, from sending the documents to a signed certificate, can be completed the same day.
How fast can it be done?
Settlement agreements come with deadlines: employers commonly give a fixed number of days to sign (Acas guidance suggests employees should have at least ten calendar days to consider an offer, but the paperwork often lands with less time than that). The advice itself is quick once a solicitor has the documents, and firms offering same-day or next-day video appointments exist precisely for this.
When comparing solicitors, match the turnaround to your deadline: standard turnaround suits an offer with weeks to run, while 48-hour fast-track and 24-hour express services exist for the "sign by Friday" situations. Advice by video call is standard for settlement agreements, and no lender-style wet-ink formality applies.
The independence rule
The adviser must be independent of your employer: not the firm advising the company on your exit, and not anyone connected with it. Your employer can suggest names, and many circulate a list for convenience, but the choice of adviser is entirely yours, and there is a real benefit in picking your own: their only client in the conversation is you.
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Compare solicitorsFrequently asked questions
Do I have to use the solicitor my employer suggests?
No. The law requires the adviser to be independent of your employer; it says nothing about who chooses them. Employers sometimes circulate a list of firms for convenience, but you are free to instruct any solicitor you like, and the employer's contribution applies regardless of who you pick.
Does my employer really pay for the advice?
Almost always, via a fixed contribution written into the agreement, typically £350 to £500 plus VAT. It normally covers the required advice on the terms and effect of the agreement. Check the wording of the clause: some contributions are only payable if you go on to sign the agreement.
How quickly can I get a settlement agreement signed off?
Same-day is realistic if the solicitor has the agreement and your details in the morning: after a 30 to 60 minute video appointment the adviser's certificate can be signed immediately. Firms offering 24-hour express service exist for exactly this deadline pressure.
What if I think the offer is too low?
The required advice is about understanding the terms and effect of the agreement, but any good adviser will tell you if the deal looks light for your circumstances. Negotiating an improvement is a separate piece of work, usually beyond the employer's contribution, so ask for a fee estimate before instructing the solicitor to negotiate.
Is a settlement agreement valid without a solicitor's signature?
Not for waiving statutory employment claims. Without advice from a relevant independent adviser and the signed certificate, the waiver is ineffective, which is why your employer will not pay out until the certificate is provided. A certified trade union official or advice-centre worker can also qualify as the adviser, but a solicitor is by far the most common route.
This guide is general information about how independent legal advice works in England and Wales, not legal advice on your situation. Lender requirements vary; always check your offer conditions. For advice you can rely on, speak to an SRA-regulated solicitor.