Settlement agreement including reasonable negotiation: what that covers

Every settlement agreement I draft comes with one round of amendments after the employee's adviser responds, which is enough for most exits; the £995 service adds the negotiation with the adviser, which runs until the agreement is signed or it becomes clear that it will not settle. This page explains what reasonable negotiation means, which requests from an adviser are standard and which are not, when the negotiation stops, and how the employer keeps control of the terms while I handle the correspondence. The agreement is delivered in three working days either way.

Who this is for

Employers in England and Wales deciding between the two settlement agreement services, and employers whose exit is likely to involve an adviser who will push.

What matters in choosing the negotiation service

What the two services are and the difference between them

The £795 service is the settlement agreement drafted for the exit, the note on the conversation, and one round of amendments after the employee's adviser responds: I review the adviser's requests, advise the employer which to accept, revise the agreement and send it back, and the employer takes it from there; the £995 service is the same agreement and note, with the negotiation with the adviser included: I correspond with the adviser on the employer's behalf until the agreement is signed or it becomes clear that it will not settle, with the employer deciding each point and me doing the talking; the difference is who handles the second and subsequent rounds, and whether there are likely to be any.

What one round of amendments covers and when it is enough

One round covers the adviser's first response in full: the standard requests (a higher figure, the tax allocation, the reference, confidentiality, the covenants, the payment dates, the fee contribution, the warranties), my advice on each, and the revised agreement; it is enough where the employee is content to leave, the figure is in the right range, the adviser's requests are the usual ones and the employer accepts most of them, which describes most redundancies, mutual partings and performance exits; the employer who takes the £795 service and finds the adviser comes back a second time can ask me to continue on a further fixed fee, which is unusual.

What reasonable negotiation means in practice

Reasonable negotiation means what, in my experience, amounts to the standard back and forth on a settlement agreement: the adviser's requests, the employer's responses, a counter-proposal or two on the figure, drafting points traded, the reference and the announcement settled, and the agreement signed, usually within two or three exchanges over a couple of weeks; it includes telephone calls with the adviser where they move things along, the revised drafts, keeping the agreement within the conditions in section 203 of the Employment Rights Act 1996 as the terms change, and advising the employer on each point; it does not include a dispute that has become something else, and the service page says so in terms.

The requests that are standard and the ones that are not

Standard requests are those an adviser makes for almost every client: a modest increase in the figure, the reference, softer confidentiality, a longer time to pay, the fee contribution increased, the covenants narrowed to the role, a clause about the employee's own property, warranties limited to what the employee knows; requests that are not standard are a demand that bears no relation to the claims, a rewrite of the agreement from scratch, allegations that change the nature of the exit (a new discrimination or whistleblowing claim), a refusal to engage with the terms at all, or conduct that is unprofessional; the first group is the negotiation service, and the second is flagged to the employer when it appears.

When the negotiation stops and what happens then

The negotiation stops when the agreement is signed, which is the usual ending, or when it becomes clear that it will not settle on terms the employer will accept, at which point I say so and the employer decides whether to improve the offer, to continue with the ordinary process (performance, conduct, redundancy) from where it was, or to settle through Acas once a claim is threatened; where the adviser's conduct or demands take the matter outside reasonable negotiation (a substantial rewrite needing material further advice to the employer, an unprofessional approach), I flag it and we discuss how best to proceed, which may involve further fixed-fee work, and that is unusual.

How the employer stays in control while someone else does the talking

The employer decides every point: I report each request with advice and a recommendation, the employer says yes, no or counter, and I respond to the adviser in those terms, so that nothing is conceded that the employer has not approved; the employer sees every letter, the agreement is revised only on the employer's instruction, and the employer signs the final version; the value of the service is that the adviser deals with someone who negotiates settlement agreements regularly, that the employer is not drawn into direct correspondence where a concession made in a sentence is made, and that the owner or manager who has to work with the employee's team is not the person arguing about the figure.

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

Which service should we choose?

The £795 service where the employee wants to leave, the figure is in range and the adviser's requests are likely to be standard, which is most exits. The £995 service where the adviser is likely to push, the employee is senior, or the employer would rather not handle the correspondence.

What if we take the £795 service and the adviser comes back twice?

Ask me to continue on a further fixed fee, which is unusual. Most exits settle after one round, which is why that is the standard service.

What happens if the negotiation goes nowhere?

I say so, and the employer decides whether to improve the offer, continue with the ordinary process, or settle through Acas once a claim is threatened. The fee covers the negotiation to that point.

Related guidance and services

• Settlement agreements for employers, £795, the service this page describes
• Employment contracts and handbooks, £595
• Shareholders agreement, £995
• Settlement agreement and the employee's independent adviser
• Settlement agreement when the employee will not sign

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.