Key Takeaways
- Your employer almost always pays for the solicitor to review your settlement agreement, so legal advice is free for you as the employee.
- Independent legal advice is required by law before signing a settlement agreement, as outlined in the Employment Rights Act 1996.
- Our solicitors provide same-day, nationwide remote appointments so your agreement can be reviewed promptly, with an adviser’s certificate issued.
- Employer contributions typically cover all solicitor fees (including VAT) for standard advice, with no deductions from your settlement.
- You have the right to choose your own qualified, independent solicitor—there’s no obligation to use your employer’s panel.
- If you need negotiation for better terms, our solicitors will seek to have your employer increase their fee contribution to cover any extra work.
- Settlement agreements are not legally binding unless you receive independent legal advice and an adviser’s certificate.
- Our service is rated Excellent, with over 1,400 five-star reviews on platforms like Trustpilot.
Who pays for the solicitor to review my settlement agreement?
In nearly all cases, your employer pays for the solicitor to review your settlement agreement. The requirement for independent legal advice means employers typically fund the legal cost directly, so you receive specialist advice free of charge. This protects you by ensuring you fully understand the terms and that your agreement is legally binding.
Our solicitors provide expert, rapid advice, with all standard costs usually covered directly by your employer. For fast support on your settlement agreement, call our solicitors on 0800 054 1144 or book your settlement agreement advice online.
Who pays for the solicitor to review my settlement agreement?
Employers almost always pay the solicitor to provide independent legal advice on your settlement agreement. This is standard practice in England and Wales, with the employer’s financial contribution clearly stated in the agreement itself. The amount, typically between £350 and £750 plus VAT, is invoiced directly to your solicitor; you do not pay upfront or have fees deducted from your settlement.
Although there’s no absolute legal requirement for employers to offer payment, the agreement cannot become legally binding without a solicitor’s certificate—so employer-paid fees are the norm.
A finance manager was made redundant and offered a settlement agreement with an employer contribution of “up to £500 plus VAT” for legal fees. Our solicitor reviewed the agreement, advised the client, signed the certificate, and invoiced the employer directly—meaning the employee paid nothing.
What is a settlement agreement and who needs legal advice?
Settlement agreements are legally binding contracts used to end employment and waive your right to pursue claims (such as unfair dismissal, redundancy, or discrimination). By signing, you settle all potential workplace claims in exchange for a payment or other terms.
You must obtain independent legal advice before signing—this is a statutory requirement, not optional. Your adviser must be a qualified solicitor or similar professional (such as a barrister, or an authorised union adviser), acting independently of your employer.
Never accept or sign a settlement agreement before getting legal advice. Your solicitor can help check calculations, protect your rights, and identify hidden risks before you commit.
For further information about the settlement agreement process, see our Settlement Agreement Advice page.
Why is independent legal advice required for settlement agreements?
Independent legal advice safeguards employees by ensuring they understand exactly what rights and potential claims they’re waiving with a settlement agreement. Without this advice—delivered by a qualified, insured, independent solicitor—the agreement is not enforceable.
This legal requirement is crucial in protecting workers from waiving their rights without proper understanding, especially on complex issues such as discrimination or redundancy.
An employee offered an agreement after raising a workplace grievance needed advice on whether they were giving up a potential harassment claim. With advice, they understood the risks before signing.
For the underlying legislative requirement, see Section 203 Employment Rights Act 1996.
What makes legal advice ‘independent and valid’ for settlement agreements?
To be valid, the advice must come from a qualified and truly independent solicitor (or other recognised adviser) who is not acting for your employer and holds professional indemnity insurance. The advice must explain the legal effect of signing, specifically which claims you are waiving. After advising, the solicitor provides a signed adviser’s certificate for your employer.
If your employer asks you to use a “panel” solicitor, you can still choose your own independent expert. The law requires advisers to be free of conflicts and qualified under s.203 Employment Rights Act 1996.
How much are settlement agreement solicitor fees, and who pays them?
Solicitor fees for providing independent legal advice on settlement agreements typically range from £350 to £750 plus VAT. Employers usually pay these costs directly because, without a valid adviser’s certificate, the agreement cannot be enforced.
Our solicitor sends the invoice to your employer after completing the advice, so employees do not need to pay or reclaim funds. If additional work—such as negotiation for better terms—is needed, we will seek an increased employer contribution to cover it.
Always check that your agreement specifies the legal fee contribution and whether it is “plus VAT”. If not clear, clarify with HR or request the agreement is amended before you proceed.
For a quick estimate of possible settlement payments, see our settlement agreement calculator.
Can I choose my own solicitor for a settlement agreement?
Yes, you retain the right to instruct any qualified, independent solicitor. Some employers may suggest a “panel”, but you are free to use any SRA-regulated lawyer, provided they are free from conflict and properly insured.
You should always select a solicitor with settlement agreement expertise, and you do not have to use your employer’s chosen firm. We offer remote, same-day appointments nationwide for complete flexibility.
To book your own choice of legal adviser, call us on 0800 054 1144 or book online for your preferred slot.
What happens if more work or negotiation is required?
In straightforward cases, employers’ standard fee contributions cover all legal costs. If you require the solicitor to negotiate improved terms or review complex issues (such as redundancy calculations or discrimination), additional fees may arise. Our solicitors will always request an increased employer contribution for such extra work, so you are not left out of pocket.
A client with a complex redundancy settlement needed detailed calculation checks and negotiation. We agreed a higher legal contribution with the employer, allowing all work to be provided at no extra charge to the employee.
Financial and tax considerations for settlement agreements
Settlement payments can include both taxable and non-taxable elements. Generally, the first £30,000 of genuine ex gratia or redundancy compensation is tax-free, but other sums—like notice pay (PENP) and holiday pay—are subject to tax and National Insurance. Legal fee contributions paid directly by the employer to your solicitor are exempt from tax.
See HMRC guidance on settlement agreement taxation for more on how individual payments are treated.
Always confirm whether your settlement payments are taxable or tax-free before signing. Failure to check can result in unexpected tax bills later.
For help calculating entitlements, you can use our Redundancy Calculator or Employment Tribunal Compensation Estimator.
What’s included in your settlement agreement legal advice?
Settlement agreement legal advice covers a detailed review of the contract’s terms (including pay, notice, references, tax, restrictive covenants, and waivers), explanation of your rights and risks, and guidance on improvements or negotiation where appropriate. It also includes the completion of your adviser’s certificate for your employer.
Most advice sessions (in person or remotely) last 30–60 minutes and cover all legal requirements so your agreement is valid and enforceable.
Before booking, ask if your solicitor will review redundancy and pay calculations and advise if negotiation is included in the basic fee.
See examples of real outcomes in our client success stories.
Step-by-step: How your settlement agreement review works
Our process is designed for speed, compliance, and peace of mind:
- Send your draft agreement to us securely.
- We arrange a same-day appointment (phone or video).
- Our solicitor reviews your draft and supporting documents.
- We explain your rights, answer questions, and explore negotiation where needed.
- If satisfied, you and our solicitor sign the adviser’s certificate confirming valid advice.
- We invoice your employer directly so you pay nothing.
- You send the completed documents back to your employer; payment of your settlement follows as agreed.
A remote worker in Yorkshire needed urgent review of a redundancy exit. We provided advice by video, completed the certificate, and had the documents processed—all within one day.
For guidance on more complex cases (such as unfair dismissal, discrimination, or whistleblowing), our solicitors offer extended negotiation and advice, often funded by your employer after discussion.
If you are ready to get started or have further questions, call 0800 054 1144 or book your settlement agreement advice online.
Frequently Asked Questions
Do employees have to pay for settlement agreement solicitor advice?
No, employees seldom pay for the solicitor’s review of a settlement agreement. The employer almost always pays the full cost directly to our solicitors, so there are no deductions from your settlement.
What if my employer refuses to pay for legal advice?
While this is rare, an employer can technically refuse, but without independent legal advice the agreement is not valid. Most employers pay because they need your adviser’s certificate for the settlement to be enforceable.
Can I choose my own solicitor, or do I have to use the employer’s panel?
Yes, you can choose any independent, qualified solicitor for your settlement agreement. You are not obliged to use your employer’s panel and may appoint a specialist of your choice.
What happens if the legal fee contribution does not cover extra work?
If you need more than a standard review—such as detailed negotiation—our solicitors will seek a higher employer contribution. You will always be told upfront if there may be a personal cost, and extra fees only apply with your consent.
Is the solicitor’s fee included in my settlement agreement?
Yes, the employer’s legal fee contribution is normally specified in your agreement as a separate line and is paid straight to our solicitors. This is not deducted from your compensation payment.
Does the employer’s contribution cover VAT?
Sometimes the fee stated is exclusive of VAT; sometimes it is inclusive. Always check your agreement to ensure you know whether VAT is included and clarify with your solicitor if unsure.
Will settlement agreement solicitor fees be deducted from my compensation?
No, for standard advice the employer pays the solicitor directly. Your compensation is paid in full, with no deduction for legal advice unless you agree to extra work beyond the standard review.
Is legal advice required for all settlement agreements?
Yes, independent legal advice is a legal requirement for all settlement agreements to be valid. Without it, your employer cannot rely on the waiver of your claims and the agreement is unenforceable.
Free Settlement Agreement Solicitor Fees — Your Rights Explained and Next Steps
Understanding who pays for settlement agreement solicitor advice is key to safeguarding your legal rights at work. Almost always, your employer covers the full cost of the mandatory independent legal review, so you receive expert, practical guidance at no cost to you and without deductions from your compensation. Our solicitors are SRA-regulated, offer same-day remote appointments, and cap all fees at your employer’s stated contribution for standard reviews.
For clear, rapid advice and a smooth, binding settlement agreement experience, call Settlement Agreement Lawyers on 0800 054 1144 or book your settlement agreement advice online for a fast, same-day appointment with our specialist solicitors.
