Settlement Agreement Solicitors
Independent advice on your settlement agreement, usually paid for by your employer. We check the offer, the tax and the terms, and sign the certificate that makes it binding.
Estimate Your Settlement PackageOur Settlement Agreement Services
Advice for employees leaving jobs across Berkshire, Buckinghamshire, Bedfordshire and Hertfordshire.
What a settlement agreement is
A settlement agreement is a legally binding contract between you and your employer. You agree not to bring certain claims, such as unfair dismissal or discrimination, and in return your employer pays you an agreed sum and agrees other terms, such as a reference. Settlement agreements used to be called compromise agreements. The name changed in 2013, but the purpose did not.
The law only lets you give up your employment claims if you have taken independent legal advice first. That is why your employer will ask you to see a solicitor, and why they usually pay towards it.
What makes it binding
| Condition | What it means for you |
|---|---|
| In writing | A signed document, not an exchange of emails |
| Relates to particular complaints | The claims you are giving up are named |
| Independent legal advice | A qualified adviser has explained the terms and their effect on your right to claim |
| Adviser named and insured | Our details appear in the agreement, and we hold professional indemnity insurance |
| States the conditions are met | A clause confirming all of the above |
If any of these is missing, the agreement does not stop you bringing the claims it lists. Your employer needs it right as much as you do.
What we check
| Element | The question |
|---|---|
| Notice pay | Are you paid your full contractual notice, not just the statutory minimum? |
| Holiday | Is accrued holiday included, at the right rate? |
| Bonus and commission | Is a bonus you have already earned included? |
| Redundancy pay | Is statutory redundancy correctly calculated, and is any enhanced scheme applied? |
| Claims you are giving up | Do you have a claim worth more than the extra payment on offer? |
| Tax | Is the payment split so the first £30,000 of compensation is tax free? |
| Reference | Is there an agreed reference, and is your employer bound to use it? |
| Restrictions | Are any non-compete or confidentiality terms reasonable? |
| Pension and benefits | What happens to your pension, health cover and share schemes? |
Tax on your settlement payment
| Payment | Usual treatment |
|---|---|
| Compensation for loss of employment | First £30,000 free of income tax, the rest taxed |
| Notice pay or pay in lieu of notice | Taxed as earnings, with National Insurance |
| Salary, holiday pay and bonus owed | Taxed as earnings |
| Statutory redundancy pay | Tax free, but counts towards the £30,000 |
| Pension contribution | Can often be paid free of tax, within your annual allowance |
| Contribution to legal fees | Not taxed when paid directly to the adviser |
Fees
Most employers pay a contribution towards your legal fees, stated in the agreement. We confirm before we start whether it covers the work. If you want us to negotiate a better package, we agree any extra cost with you first.
How it works
- 1
Send us the documents. The draft agreement, your contract and recent payslips.
- 2
We review and advise. We check the figures, the tax split and the claims you are giving up.
- 3
We speak to you. By phone, video or in person at Maidenhead or Luton. We explain the agreement and whether the offer is reasonable.
- 4
We negotiate if you want us to, then sign the adviser's certificate once you are happy.
Deadlines
A tribunal claim has a strict time limit, which runs from the date of dismissal or the act you are complaining about, and is extended by Acas early conciliation. The limit is changing under the Employment Rights Act 2025. Settlement talks do not stop the clock, so tell us on your first call if you are close to a deadline.
Why use J Scott & Co
- Regulated and insured by the Solicitors Regulation Authority, so we can sign the adviser's certificate.
- Usually employer funded, with no cost to you for the standard review.
- Offices in Maidenhead and Luton, plus phone and video for anyone working further away.
What Our Clients Say
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Frequently Asked Questions
Settlement agreement solicitors near you
We advise employees across Berkshire, Buckinghamshire, Bedfordshire, Hertfordshire and Milton Keynes.
Employment exits do not always happen where you live. Choose your area for practical advice on the offer, legal fees and documents to prepare. Our settlement team works from Maidenhead and Luton, with phone and video appointments for clients further away.
Near our Maidenhead office
Near our Luton office
Only Maidenhead, Luton and Canary Wharf are office locations. Other areas are served through those offices.
Other services
Been offered a settlement agreement?
Send it to us and we will tell you what it means and whether the offer is fair.