Settlement agreements for employers

I draft settlement agreements for UK employers for a fixed fee of £750 plus VAT, delivered in three working days. I act for employers only. I am Geoffrey Caesar, a solicitor of England and Wales admitted in 2008, based in London and acting for employers across England and Wales.

You want someone to leave, and you want it to be final. A settlement agreement is the only reliable way to buy that finality, because it is one of the few ways an employee can validly give up statutory claims.

The two failures are opposite and equally expensive. Employers who use a template that does not properly waive the claims discover it was worth nothing. And employers who open the conversation badly find the protected conversation was not protected at all, and that the approach itself has become evidence.

What it costs

• Settlement agreement, £750 plus VAT. Drafted for your situation, with a note on how to have the conversation. Three working days.
• Agreement plus negotiation, £1,500 plus VAT. Where the employee's adviser is likely to push back and you want me handling it.
• Template for repeat use, £1,200 plus VAT. If you settle exits regularly.

It is standard for the employer to contribute to the employee's legal costs of taking advice on the agreement. I will tell you what is normal for the size of settlement you are proposing.

What you get

• A settlement agreement drafted around the exit you are actually doing
• 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

How long it takes

Three working days from payment, and faster if you are up against a deadline. Say so in the first email.

How to instruct me

1. Email me. Send any relevant documents, or three or four lines describing the situation and your deadline. You do not need to prepare a brief.
2. I confirm the scope, the price and the timetable. In writing, usually the same working day, and if a short call would help I will offer one at no charge. I then invoice you, and the work starts once the invoice is paid. Larger pieces of work can be split into milestone payments if that suits you better.
3. I deliver on the agreed date. With a call or a follow-up exchange included, so you are not paying again to understand the advice.

Why instruct me directly

A law firm has premises, partners, support staff, marketing and a compliance department, and every hour it bills has to carry a share of all of it. I have none of that. You are paying for the lawyer and nothing else.

• Senior attention as standard. The person who reads your contract is the person you emailed. Nothing is delegated to a trainee.
• In-house and private practice experience. I know what a clause does to a business six months later, not just what it says.
• No onboarding process. Email, scope, fixed price, invoice, work. There is no client portal to register with and no forms to complete.
• Better value for the same expertise. Without a firm's overheads, senior time costs less, which is why fixed fees at this level are possible at all.
• Fixed prices, published. You know the number before you commit. I publish them because cost uncertainty is the main reason businesses do not take advice they need.

Who this is for

• You have decided someone should leave and you want it clean and final
• You are making redundancies and want to settle rather than risk claims
• There is a performance or conduct issue you would rather resolve than litigate
• A departing employee holds relationships or information you need protected

Questions I am often asked

How much does a settlement agreement cost for an employer?

£750 plus VAT for an agreement drafted for your situation, delivered in three working days. If you want me to handle the negotiation with the employee's adviser as well, that is £1,500 plus VAT. A reusable template, if you settle exits regularly, is £1,200 plus VAT.

Does the employee need their own solicitor?

Yes. A settlement agreement is only binding if the employee has received independent advice from a relevant independent adviser who is identified in the agreement and insured. Without it the waiver fails and you have paid for nothing.

Employers normally contribute to that cost, and I will tell you what contribution is usual.

Do we have to contribute to the employee's legal costs?

In practice it is expected, and it is how the process moves quickly. A contribution is cheap relative to the value of a clean waiver, and I will tell you what is usual for the settlement you are proposing.

Is the payment tax free?

Up to £30,000 of a genuine termination payment can be paid without tax, but a good deal of what employers put into settlement agreements does not qualify: notice pay, holiday pay, bonuses and anything contractual. Getting the split wrong leaves you exposed to HMRC, not the employee.

What is a protected conversation?

Section 111A of the Employment Rights Act 1996 lets you have an off the record conversation about ending employment which cannot be used in an ordinary unfair dismissal claim. It has real limits: it does not protect you where there is discrimination, automatic unfair dismissal or improper behaviour.

How you open the conversation matters as much as the document, which is why the note on it is included.

Can we reuse the same agreement for the next exit?

With care, and that is what the template option is for. Settlement agreements need to reflect the actual claims in play, so a template needs to be built to be adapted rather than simply renamed.

About me

I am Geoffrey Caesar. I have worked on commercial contracts since 2001, first in industry and then in private practice, so I have sat on both sides of the table: as the in-house lawyer who has to live with the contract, and as the external adviser who drafts it.

• Solicitor of England and Wales, admitted 2008. SRA ID 483394.
• Practising as an SRA-regulated freelance solicitor under regulation 10.2(b) of the SRA Authorisation of Individuals Regulations. Practice SRA number 666497.
• Regulated by the Solicitors Regulation Authority and authorised to provide all legal services, including reserved legal activities.
• Called to the Bar by Gray's Inn in 2005.
• Working on commercial contracts since 2001, in-house and in private practice.
• Based in London, acting for businesses across England and Wales.
• Professional indemnity insurance in place with a limit of £1,000,000 for each claim, with defence costs in addition. Details on request.
• I do not hold client money.

Two things you should know about instructing a freelance solicitor rather than a law firm. My professional indemnity insurance is not on the SRA's minimum terms and conditions; alternative arrangements are in place instead, and I will give you the details on request. And you can still apply to the SRA Compensation Fund for losses caused by dishonesty or a failure to account for money. Everything else, including the Code of Conduct, the SRA Principles and the Legal Ombudsman, applies to me exactly as it applies to any other solicitor.

Related services

• Employment contracts and handbooks, from £750 plus VAT

Last reviewed: September 2026. Email geoffrey@caesar.co.uk.