Key Takeaways
- If you sign a valid settlement agreement, you usually cannot go to employment tribunal for any claims covered by the agreement.
- Settlement agreements are only legally binding if you receive independent legal advice from a qualified SRA-regulated solicitor under the Employment Rights Act 1996.
- Settlement agreements typically waive your right to bring future employment tribunal claims, including unfair dismissal, redundancy, and discrimination.
- You may still go to employment tribunal if your settlement agreement is unenforceable, does not cover your specific claim, or was signed under duress or without proper advice.
- Our solicitors offer same-day remote appointments to give independent legal advice, and we issue the adviser’s certificate needed to make your agreement legally effective.
- The employer usually pays all legal costs for independent advice, making our settlement agreement service free for employees.
- If your employer breaches the agreement terms, you may still have options to take further legal action or pursue your claim.
- Settlement Agreement Lawyers are rated Excellent with over 1,400 five-star reviews of our lawyers on Trustpilot, Google and other platforms, providing trusted and expert support UK-wide.
Can I Still Go to Employment Tribunal After Signing a Settlement Agreement?
If you have signed a settlement agreement with your employer, you usually cannot go to an employment tribunal for any claim covered by that agreement. Settlement agreements are only legally binding if you have received independent legal advice from an SRA-regulated solicitor, and your employer will almost always pay the legal costs—making the advice from our solicitors completely free for employees.
Understanding what you are signing is crucial, as most settlement agreements include a waiver of your right to bring future claims to the tribunal, such as unfair dismissal, redundancy or discrimination. Our solicitors will carefully review your agreement, advise on your rights, and explain what claims are (and are not) waived, so you have clarity before moving forward.
This article explains when a settlement agreement will prevent you from going to an employment tribunal, the main exceptions, and what to do if you think your agreement is invalid or you still have a potential claim. For expert independent legal advice, call our solicitors on 0800 054 1144 or book your settlement agreement advice online.
Can I Still Go to Employment Tribunal After Signing a Settlement Agreement?
In most cases, once you have signed a valid settlement agreement, you cannot go to an employment tribunal regarding the issues specifically covered by that agreement. Signing a settlement agreement is intended to bring finality and prevent future claims about the employment or its termination, providing you receive a financial sum or other benefit in return. However, there are limited exceptions. If the agreement is invalid (for example, if you did not receive mandatory independent legal advice), if your agreement contains errors, or if certain types of claims are not specifically waived, you may still have rights to bring a claim in the employment tribunal.
If you are considering a settlement agreement, it is critical not to resign or sign anything before your terms have been reviewed by a solicitor. This protects your position and ensures you are not inadvertently limiting valuable tribunal rights or weakening your negotiating leverage. Our solicitors can advise you from the earliest stages.
What Is a Settlement Agreement and How Does It Affect Employment Tribunal Rights?
A settlement agreement is a legally binding contract between an employer and an employee, normally used to resolve workplace disputes or finalise the terms of an exit (such as redundancy, mutual agreement, or resignation). In legal terms, it functions as a waiver of the employee’s right to pursue certain claims at the employment tribunal, in exchange for compensation or other benefits. Once validly signed, the employee cannot usually take legal action in relation to the claims listed within the agreement.
These agreements are governed by strict statutory requirements, distinguishing them from the standard compromise agreements previously used. While a COT3 agreement (typically negotiated with Acas) also settles claims, a settlement agreement specifically requires independent legal advice to be enforceable and capable of waiving employment tribunal rights under the Employment Rights Act 1996.
An employee facing redundancy is offered a settlement agreement that includes a lump sum payment and an agreed reference. Upon signing, ownership of tribunal rights for redundancy pay, unfair dismissal, and most contractual claims is lost—unless an exception or improper process exists.
To learn more about the details and consequences, see our page on settlement agreement advice.
Why Is Independent Legal Advice Required for a Valid Settlement Agreement? (s.203 ERA 1996 Explained)
For a settlement agreement to be legally binding and valid, section 203 of the Employment Rights Act 1996 requires that the employee receives independent legal advice. The solicitor must explain the effect of the agreement, especially how it impacts your ability to bring tribunal claims. The advice must be given by a suitably insured adviser (typically an SRA-regulated solicitor) who is not connected to your employer.
Without this independent legal advice—and the accompanying certificate from the adviser—the settlement agreement cannot lawfully waive your statutory employment rights. This safeguards employees from being pressured to sign away their rights without understanding the full implications.
Always ensure the solicitor advising you is truly independent and SRA-regulated. Our solicitors provide remote, same-day appointments, and the employer pays our fixed fee directly—you pay nothing.
For further detail, visit the government’s guide to settlement agreements or review the legislation at legislation.gov.uk, section 203. If you’d like to know about our process, you can book your independent legal advice online for a free appointment.
What Claims Are Waived by Signing a Settlement Agreement?
When you sign a settlement agreement, you generally waive your right to bring legal or tribunal claims related to your employment or its termination—provided those claims are specifically identified in the agreement. Most agreements will explicitly list claims including unfair dismissal, redundancy pay, breach of contract (e.g. notice or holiday pay), unlawful deduction from wages, and claims under the Equality Act 2010 such as discrimination and harassment.
Some settlement agreements may also cover claims under various other statutes, such as whistleblowing or health and safety. But the waiver is only effective for those claims that are listed either individually or by clear statutory reference. Claims not mentioned cannot usually be waived, and your agreement must not purport to exclude future claims that have not yet arisen.
A settlement agreement covers unfair dismissal, all discrimination claims under the Equality Act 2010, and statutory redundancy pay. The employee later tries to bring a tribunal claim for holiday pay—which was not referenced. Depending on the agreement wording, this may still be possible.
You can see which claims you are likely to waive by checking against our settlement agreement advice resources or seeking specific advice from our solicitors.
Exceptions: When Can You Still Go to Employment Tribunal After a Settlement Agreement?
While a valid settlement agreement generally prevents you from pursuing the covered claims at an employment tribunal, certain exceptions apply:
- Failure of Proper Legal Advice: If you did not receive independent legal advice, or the agreement does not meet statutory requirements, it will not be enforceable against you.
- Claims Not Covered: Claims not specified or waived in the agreement remain open.
- Statutory Exclusions: Some statutory rights cannot lawfully be waived (e.g., personal injury claims unknown at the time, accrued pension rights).
- Breach of Agreement: If your employer breaches a key term (such as failing to pay the agreed sum), you may be entitled to bring a claim for enforcement or, in some cases, pursue the original tribunal claim.
- Future Claims: Settlement agreements cannot lawfully exclude claims that arise after the date of signature.
Carefully review the list of claims in your agreement and their statutory references. Our solicitors routinely spot missing or incorrectly listed claims that, if not addressed, could leave you unfairly exposed or inadvertently unable to pursue a tribunal remedy.
See further on your rights after settlement at Acas settlement agreements guidance and Employment Rights Act 1996.
What If My Settlement Agreement Does Not Cover My Specific Claim?
If your settlement agreement does not explicitly refer to a particular claim—or fails to identify it by statute or description—you may still be able to pursue that claim at an employment tribunal. Courts and tribunals interpret settlement agreements strictly; only the claims genuinely contemplated and clearly specified are waived. For example, if your agreement covers unfair dismissal and redundancy pay but does not mention discrimination, you could (in principle) still bring a discrimination claim.
However, interpreting the scope of waivers can be complex, particularly where the agreement attempts to capture “all claims” in broad terms. Tribunals tend to uphold waivers for clearly identified claims only. Reviewing the specific wording with an experienced solicitor is essential.
Sarah was given a settlement agreement on redundancy that failed to mention her possible whistleblowing claim. After seeking our advice, she retained her right to bring a whistleblowing claim even after signing for other waived issues.
Explore more about protected disclosures and omitted claims on our whistleblowing & protected disclosures page or with our online settlement agreement calculator.
If you’re unsure which claims your agreement covers and what rights you retain, call our settlement agreement solicitors on 0800 054 1144, or book your settlement agreement advice online for a same-day appointment. Our advice is free to employees, as employer funding covers our fee, and you must have independent legal review for your agreement to be valid.
Typical Financial Offers and How to Know if Your Settlement Agreement Is Fair
Settlement payments cover a range of items—statutory redundancy pay, equivalent notice pay, accrued holiday pay, and (usually tax-free) ex gratia sums as compensation for loss of employment. How do you know if the offer is fair? Start by assessing statutory entitlements: redundancy, notice period, and outstanding holiday should always be paid in full. Many employers also offer an additional lump sum to secure your agreement to waive further rights.
Compare your offer to typical awards in similar cases. Check what you might receive at tribunal. Our settlement agreement calculator and employment tribunal compensation estimator can help you benchmark.
| Payment Type | Tax-Free? | Typical Basis |
|---|---|---|
| Statutory Redundancy Pay | Yes (up to £30,000) | Based on years’ service, age, weekly pay cap; see GOV.UK redundancy |
| Notice Pay (or Pay In Lieu: PILON) | No | Fully taxable as income |
| Accrued Holidays | No | Taxable as normal pay |
| Ex Gratia/Compensation Payment | Yes (up to £30,000) | Agreed lump sum, tax free up to statutory limit |
Always request a detailed payment breakdown and check whether all your outstanding contractual rights (like commission or holiday pay) are properly included. Our solicitors can review these calculations and, if needed, negotiate for better terms.
Find out more in our redundancy settlement agreement guidance and client success stories.
Tax Implications of Settlement Agreements: What Is Tax-Free and What Is Not?
The tax treatment of settlement payments is strictly regulated. Under current HMRC rules, the first £30,000 of a genuine termination payment (such as redundancy pay or ex gratia compensation) can generally be paid tax-free—provided it is not a contractual entitlement or a disguised payment for work or notice. Payments for accrued holiday, salary, and notice (including any payment in lieu of notice, or PILON) are taxable as standard income and subject to PAYE.
Since April 2018, “post-employment notice pay” (PENP) is specifically taxable, even where not worked. Employers must now subtract PENP from the tax-free portion. If your settlement includes a PILON clause or you are being paid instead of working your notice, expect full taxation.
| Payment Element | Taxed? | Notes |
|---|---|---|
| Statutory Redundancy | No (to £30k) | Above £30k, subject to tax and NI |
| Ex Gratia Payment | No (to £30k) | Only genuine compensation for loss of employment |
| PILON / PENP | Yes | Always taxable |
| Holiday Pay / Salary Owed | Yes | Classes as normal employment income |
Amir’s settlement includes £10,000 redundancy pay, £15,000 ex gratia compensation, and £3,000 accrued holiday pay. Only the first £25,000 (redundancy + ex gratia) is tax free; the holiday pay is subject to tax.
You can find practical HMRC advice on the GOV.UK employment termination payment page, or use our settlement agreement calculator for a personalised breakdown.
Key Clauses and Legal Risks in Settlement Agreements (Restrictive Covenants, Confidentiality, References, Indemnities)
Besides payments and waivers, settlement agreements often contain clauses that may affect your future career, finances, or reputation. Common examples:
- Restrictive Covenants: Prevent you from working for competitors, soliciting clients, or poaching colleagues for a set period. Review scope, duration, and geographical limits carefully.
- Confidentiality: Obligates you not to discuss terms or circumstances of your departure, sometimes with carve-outs for regulators and family.
- Reference: Many agreements specify a form of reference your employer will provide—ensure it is fair and agreed upfront.
- Tax Indemnities: Typically, you promise to repay any shortfall in tax HMRC may claim; it’s vital to understand the risks and negotiate caps if possible.
- Warranty of No Claims: You confirm you have not already initiated tribunal or court proceedings.
You should ensure that these clauses are reasonable, necessary, and proportionate to your new employment prospects.
Do not sign a settlement agreement without a solicitor checking for unreasonable or overly broad restrictions. Our solicitors routinely negotiate improvements on reference wording, carve-outs for whistleblowing or regulator notification, and limits on your future liability for tax or legal costs.
See our settlement agreement advice and performance, capability & disciplinary exits guidance for more on these risks.
Step-by-Step: The Settlement Agreement Signing and Independent Legal Advice Process
Below is the typical process our solicitors follow to ensure your agreement is compliant and you are fully protected:
- Receive the Draft Agreement: Your employer provides a written draft.
- Book and Attend a Legal Advice Appointment: You book your independent legal advice online or by phone for a same-day remote consultation.
- Agreement Review: Our solicitor reviews every clause, assesses financial fairness, identifies missing/overbroad waivers, and explains the impact.
- Negotiation (if required): If the terms are unfair, incomplete, or unclear, our solicitor advises on negotiation strategy and can liaise directly with your employer to improve the offer.
- Amendment and Final Approval: The employer issues a revised agreement, if needed, as a result of negotiation.
- Signature and Legal Certification: You sign the final version; our solicitor issues an independent legal advice certificate and sends this to your employer.
- Payment of Settlement: You usually receive the agreed payment within 7–28 days.
Emma booked her advice online after receiving her agreement. Our solicitor identified that her non-compete clause was excessive (six months for a junior role), and we successfully negotiated it down to three, plus a guaranteed reference.
For more on the process, see our guides to settlement agreement advice and funding information—remember, the employer funds your legal fees.
To ensure you get the best possible outcome and that your settlement agreement is valid, call our settlement agreement solicitors on 0800 054 1144, or book your settlement agreement advice online for a fast, free and independent appointment. There’s no charge to employees because the employer pays our fee, and you must have this advice for the agreement to be valid.
Why Choose Settlement Agreement Lawyers?
Our solicitors are SRA-regulated specialists with deep experience in negotiating and advising on settlement agreements for employees across England and Wales. We pride ourselves on same-day, fully remote service, so you don’t need to travel. We know that employers must pay your legal fees (not you), and our fixed fee is capped at their contribution.
As experts, we ensure your rights are protected, the agreement is fair, and your future is secure. From checking whether all necessary claims are included to negotiating better terms and ensuring you keep essential tribunal rights where required, our solicitors are on your side from start to finish.
Using a specialist solicitor not only meets the legal requirement but can uncover additional payments or improved terms—for example, securing better holiday pay calculations or a positive agreed reference—at no extra cost to you.
Read about our approach, expertise, and results on our section for client success stories.
Frequently Asked Questions About Can I Still Go to Employment Tribunal After Signing a Settlement Agreement?
What happens if I want to go to tribunal after signing a settlement agreement?
You will usually be prevented from bringing tribunal claims covered by your validly signed settlement agreement. If you attempt to bring a covered claim, the employer can rely on the agreement as a complete legal defence. However, exceptions exist if the agreement was invalid or the claim is not mentioned in the waiver.
Are there any claims I can still bring after signing my agreement?
Yes, you can still bring claims that are not specifically identified or waived in the agreement. Personal injury claims unknown at signing, accrued pension rights, or future claims arising after signature generally remain unaffected unless unlawfully excluded.
What if I did not receive proper legal advice before signing?
If you did not receive independent legal advice from a qualified adviser, your settlement agreement is not legally valid. Without that mandatory advice and certificate under section 203 ERA 1996, the agreement cannot lawfully waive your tribunal rights, and you can still bring claims.
Can I claim unfair dismissal or discrimination after a settlement agreement?
Usually not. Settlement agreements almost always waive the right to bring unfair dismissal and discrimination claims, provided they are referred to in the agreement. If either claim is not clearly covered, or the agreement is defective, you may still be able to pursue a claim.
Is my redundancy settlement agreement valid if I felt pressured to sign?
A settlement agreement obtained by undue pressure or duress may be challenged and possibly set aside. If you felt coerced, seek urgent advice—tribunals will assess evidence of true voluntariness and the presence of meaningful independent legal advice.
What if my employer breaches the terms of our agreement?
If your employer fails to pay, provide a reference, or otherwise breaches a key term, you may take legal action to enforce the agreement or, in some situations, pursue tribunal claims that would otherwise have been waived. Advice should be taken as facts are very case-specific.
Do I need a solicitor to check my settlement agreement is enforceable?
Yes, you must have a qualified, independent solicitor (or equivalent) advise you for the agreement to be valid and enforceable. Without this, your employer cannot legally rely on the waiver. Our solicitors ensure all statutory requirements are met and your interests are protected.
How can I find out which claims are covered by my agreement?
Your agreement should list all claims being waived, usually by statute and description. An experienced solicitor can review and explain precisely which rights are affected and which remain. Contact our team to check your agreement’s coverage before you sign.
Still Unsure If You Can Go to Tribunal After a Settlement Agreement? Get Expert Answers Now
Understanding exactly when you can (or cannot) bring a claim to an employment tribunal after signing a settlement agreement is critical to protecting your rights, finances, and reputation. The law is clear that a properly executed agreement usually prevents you from making covered claims, but there are important exceptions—whether through invalid documents, missing claims, or clear legal errors. Our solicitors help employees spot these details, assess if their offer is fair, explain the tax position, and negotiate better terms where needed.
With employer-funded fees, same-day remote appointments, and SRA-regulated solicitors, you can rely on our service to deliver clear, practical advice at no cost to you. We make sure your settlement agreement is valid, your rights are safeguarded, and you get the maximum benefit available under the law.
For certainty, speed, and peace of mind, call Settlement Agreement Lawyers on 0800 054 1144, or book your settlement agreement advice online for a same-day remote appointment with our specialist team.
