Settlement agreement and the employee's independent adviser

A settlement agreement does not waive statutory claims unless the employee has received advice from a relevant independent adviser on its terms and effect, which is why the employer pays for a solicitor to advise the person it is paying to leave. The adviser's certificate is part of the document, the adviser's amendments are part of the process, and an adviser who delays or advises against signing is a problem the employer needs to understand. The agreement I draft is written so that the adviser can certify it without difficulty, and the note explains what the adviser will do, for a fixed fee of £795 in three working days; a version including the negotiation with the adviser is £995.

Who this is for

Employers in England and Wales who want to understand the adviser's role before they offer a settlement, and employers whose settlement has stalled at the adviser's desk.

What matters in the independent adviser's role

Why the agreement is invalid without the adviser

Section 203 of the Employment Rights Act 1996, section 147 of the Equality Act 2010 and the equivalent provisions in the other employment statutes make a settlement agreement effective to waive statutory claims only if, among other conditions, the employee has received advice from a relevant independent adviser as to the terms and effect of the agreement and in particular its effect on their ability to pursue their rights before a tribunal, the adviser is covered by insurance or an indemnity for the advice, the agreement identifies the adviser, and it states that the conditions are satisfied; an agreement signed without the advice waives nothing, however much the employer has paid, which is why the adviser is the employer's protection as much as the employee's.

Who can be a relevant independent adviser

A relevant independent adviser is a qualified lawyer (a solicitor or barrister), a certified trade union officer, official or employee, or a certified advice centre worker, who is not employed by or acting for the employer or an associated employer and does not have an interest in the agreement; the employer cannot nominate its own solicitor, cannot require the employee to use a particular adviser (though it may suggest one), and should check that the adviser's details are complete in the certificate, because an agreement certified by someone who does not qualify is an agreement that does not work.

What the adviser must advise on and certify

The adviser advises on the terms and effect of the agreement and on its effect on the employee's ability to bring tribunal claims, which means explaining the waiver, the claims the employee is giving up, the value of the package against those claims, the tax treatment in outline, the confidentiality and covenant obligations and the consequences of breach; the adviser does not have to advise that the agreement is a good deal, only that the employee understands it, and signs a certificate in the form the agreement contains confirming the advice and the insurance; the agreement I draft contains a certificate in a form advisers accept and a waiver drafted so that the adviser can explain it.

The employer's contribution to the fees and its tax treatment

The employer usually contributes to the employee's legal fees for the advice (a stated sum plus VAT, often a few hundred pounds for an ordinary agreement and more for a complex or senior one), paid direct to the adviser against an invoice addressed to the employee, which is exempt from tax under section 413A of the Income Tax (Earnings and Pensions) Act 2003 provided the agreement contains the obligation and the fees relate to the termination; the contribution is a term of the agreement rather than a favour, and an employer that refuses to contribute finds that the employee cannot afford the advice without which the agreement is useless.

What the adviser will ask for and how the employer responds

The adviser will usually ask for changes: a higher payment where the claims justify it, the tax allocation adjusted, the reference improved, confidentiality narrowed, the covenants shortened, the payment dates brought forward, a clause confirming the employee's property or data, the fee contribution increased, and warranties softened; most of it is standard and the fixed fee covers one round of amendments, with the negotiation service covering the back and forth where it continues, and the employer should refer the adviser's letter to me rather than respond directly, because a concession made by the employer in correspondence is made; the note explains which requests are usual and which are not.

The adviser who delays, declines or advises against signing

An adviser may delay because the employee has not instructed them, because they want more information from the employer (the contract, the handbook, the payslips, the disciplinary file), or because they are negotiating; the employer should respond to reasonable requests promptly and keep the offer open for the period the Acas Code expects; an adviser who advises against signing has usually identified a claim the package does not reflect, which is information the employer should use, and an adviser who declines to certify is telling the employer that the agreement or the advice has a defect; in each case the note explains the options (improve the offer, address the defect, proceed with the ordinary process, settle through Acas instead), and the negotiation service exists for the agreements that take longer than one round.

What it costs

Settlement agreement, £795. Drafted for your situation, with a note on how to have the conversation. Three working days.

Settlement agreement including reasonable negotiation with the employee's adviser, £995. The agreement in three working days. The negotiation then runs until the agreement is signed or it becomes clear it will not settle. Reasonable negotiation means what, in my experience, amounts to the standard back and forth on a settlement agreement. If the employee or their adviser is being unreasonable, for example by conducting themselves unprofessionally or requiring a substantial rewrite that needs material further legal advice to you, I will flag it and we will discuss how best to proceed, which may involve further fixed-fee work. That would be unusual.

Buying online forms the engagement on payment. The scope is what the settlement agreements for employers page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A bespoke settlement agreement drafted for the exit you are dealing with
• Proper waiver of the relevant statutory claims, so the agreement does what you are paying for
• Advice on the tax treatment, including the £30,000 exemption and what falls outside it
• Confidentiality, non-derogatory statements and an agreed reference
• Reaffirmation or replacement of restrictive covenants, which is often the real value
• A short note on how to open the conversation and keep it without prejudice or protected
• One round of amendments after the employee's adviser responds

What is not included

• Advising the employee, which their own adviser must do independently for the agreement to be valid
• Tribunal representation if the matter does not settle
• Payroll processing of the settlement sums
• Handling the settlement payment, since I do not hold client money

Questions I am often asked

Can we tell the employee to use our solicitor to save money?

You cannot. The adviser must be independent of the employer, and an agreement certified by the employer's own solicitor does not work. You can suggest advisers; the employee chooses.

How much should we contribute to the employee's legal fees?

A stated sum plus VAT, often a few hundred pounds for an ordinary agreement and more for a senior or complex one, paid direct to the adviser and tax-free under the exemption. The agreement states the figure.

The employee's solicitor has come back with a list of changes. Is that normal?

It is. One round of amendments is part of the process and the fixed fee covers it. Refer the letter to me rather than responding directly; where the back and forth continues, the negotiation service covers it.

Related guidance and services

• Settlement agreements for employers, £795, the service this page describes
• Employment contracts and handbooks, £595
• Shareholders agreement, £995
• Protected conversations before a settlement
• Settlement agreement including reasonable negotiation: what that covers

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: October 2026. Email geoffrey@caesar.co.uk.