Key Takeaways
- If your employer does not pay, settlement agreement solicitor fees generally range from £350 to £750 plus VAT for standard independent legal advice.
- By law, you must obtain independent legal advice before signing a settlement agreement, in line with s.203 Employment Rights Act 1996.
- Employers usually pay your settlement agreement legal costs, but you should confirm this before proceeding.
- If your employer offers no or only partial funding, you are entitled to negotiate a higher contribution as part of the settlement.
- Our solicitors offer rapid, fully remote appointments for settlement agreement advice UK-wide, including same-day support.
- More complex settlements—such as those involving dispute claims, restrictive covenants, or bonuses—may result in higher solicitor fees.
- Up to £30,000 of your settlement can be tax-free, but consult our solicitors to structure your agreement correctly and avoid surprise tax liabilities.
- Our solicitors are SRA regulated, and our service is rated Excellent with over 1,400 five-star reviews on independent platforms including Trustpilot and Google.
How much do solicitors charge for settlement agreement advice if employer doesn’t pay?
If your employer does not pay, settlement agreement solicitor fees for straightforward, independent advice usually range from £350 to £750 plus VAT. Under UK law, you must obtain this advice from a qualified solicitor for your settlement agreement to be legally valid. In most cases, your employer pays for this advice, making it free for you, but if they do not, you may need to pay yourself or negotiate a higher contribution.
Getting the right advice before you sign is vital: you relinquish employment claims against your employer and need to ensure your deal is fair and tax-efficient. Our solicitors provide fully remote, expert settlement agreement advice across England and Wales, handling all legal, practical, and tax issues—typically at no cost to you when the employer pays.
To book a settlement agreement solicitor, call 0800 054 1144 or book your appointment online.
How much do solicitors charge for settlement agreement advice if employer doesn’t pay?
If your employer doesn’t cover legal fees, solicitors typically charge between £300 and £500 plus VAT for standard settlement agreement advice. Complex cases may be higher, particularly those involving lengthy negotiations or additional legal issues. The fee covers reviewing the agreement, explaining terms, checking compliance, and providing the required solicitor’s certificate. Payment is due either upfront or on completion, before the signed agreement is returned.
A client’s employer offered a £350 contribution, but our solicitor’s standard fee was £425 plus VAT. The client paid the £75 difference, although a successful negotiation often secures a higher employer contribution once legal requirements are clarified.
For more on funding and cost breakdowns, visit our Settlement Agreement Advice and Settlement Agreement Calculator pages.
What is a settlement agreement and when do you need solicitor advice?
A settlement agreement is a legally binding contract between employer and employee, resolving employment rights or claims usually at the end of employment or following a dispute. Typical terms include payment details, a waiver of claims such as unfair dismissal or discrimination, confidentiality, reference clauses, and post-employment obligations.
You are legally required to take independent legal advice before signing, to ensure you understand your rights, claims you’re waiving, and all agreement implications. This is especially important if there are complex issues like redundancy, harassment, or restrictive covenants.
Do not sign or resign before your solicitor has reviewed the draft—this protects your statutory and contractual rights, helps ensure your settlement offer is fair, and prevents costly mistakes.
See the official ACAS settlement agreements guidance for more on when and why independent legal advice is mandatory.
Independent legal advice for settlement agreements: What does the law require?
Section 203 of the Employment Rights Act 1996 says a settlement agreement is only legally binding if you’ve received independent legal advice about its terms and your waived statutory rights. The adviser—usually a solicitor—must be named in your agreement and be properly insured. Our solicitor provides a signed certificate to confirm your advice was independent and valid.
The solicitor will ensure you understand what you’re giving up (e.g., claims for redundancy, discrimination, unfair or constructive dismissal), and any ongoing obligations like confidentiality.
A client was offered a redundancy settlement but nearly signed without legal advice. Our solicitor found a £1,100 underpayment in holiday pay and negotiated an additional sum before certification—without advice, this would have been lost.
See section 203 of the Employment Rights Act 1996 and gov.uk settlement agreements guidance for legal details.
Why does s.203 Employment Rights Act 1996 require independent legal advice?
Section 203 is designed to ensure employees don’t give up vital employment rights without understanding the consequences. Independent advice from a qualified, insured solicitor guarantees the agreement is fair and that any waiver of rights is legally valid and enforceable.
You are entitled to your own solicitor—never feel pressured to use a solicitor recommended by your employer. Independent advice protects your interests and ensures the agreement stands up in law.
Find authoritative explanation at ACAS settlement agreements advice.
Typical settlement agreement solicitor fees if your employer does not pay
While it is standard practice for employers to pay, solicitor fees for settlement agreement advice—if not covered—generally start at £300–£500 plus VAT for straightforward cases. More complex settlement agreements with detailed benefits, share schemes or multiple disputes may require legal fees of £600–£900 or more.
Some firms offer fixed fees; others charge hourly. The advice fee is separate from your financial settlement and only covers the necessary independent legal advice and certification.
A director with a lengthy agreement and bonus arrangements required detailed advice. The legal fee was £750 plus VAT, while the employer initially offered only £500. The director decided to pay the balance for comprehensive protection and negotiation.
Try our Settlement Agreement Calculator to estimate your own entitlements and see how fees may relate to your settlement value.
What is the normal contribution for legal fees in a settlement agreement?
Employers generally offer a legal fee contribution of £350–£500 plus VAT—this is designed to reflect standard market rates for independent legal advice and the mandatory solicitor’s certificate. For very simple cases, the sum suffices; in complex cases, you may need to request a higher employer contribution, especially if significant negotiation or specialist input is needed.
Always get a written cost estimate. If your case is complex, provide your employer with this and request a higher contribution at the outset to avoid funding shortfalls later.
More funding guidance is available on our employee funding page.
Can you negotiate a higher legal fee contribution from your employer?
You can—and often should—negotiate for your employer to pay more if their initial offer won’t cover your solicitor’s actual fee, especially for longer or more complicated agreements. A short note from your solicitor explaining the fee and complexity is often enough to have the contribution increased.
A client with a 15-page agreement was offered a £300 contribution. After sharing our solicitor’s cost breakdown, the employer increased this to £500, covering the full legal fee.
If you want support negotiating fees or terms, call our team on 0800 054 1144 or book your settlement agreement advice online.
Is the financial offer and legal fee contribution fair?
A fair settlement agreement matches or improves on your statutory rights, includes all owed sums, and ensures you are adequately compensated and protected. Our solicitors compare the offer against likely tribunal compensation, weigh litigation risk, and confirm your entitlements (notice, redundancy, holiday, ex gratia payment). If legal fee support is below the normal band, you may have grounds to ask for more.
Check what each payment covers—taxable and tax-free elements should be separated and itemised in your agreement to avoid losing money to tax unnecessarily.
See our Redundancy Calculator and Discrimination Compensation Calculator for help valuing an offer.
Key factors to consider when assessing your settlement and legal costs
Consider:
- Value of your legal claims (unfair dismissal, discrimination, redundancy)
- Notice period and whether it is paid and taxed properly
- Accrued holiday pay and unpaid bonuses
- Post-employment restrictions
- Legal fee contribution—does it reflect market rates and complexity?
- Tax: separation of taxable and tax-free elements
A client was given a lump sum figure. Our solicitor noted notice and holiday pay had not been separated out, risking higher tax. We secured a corrected agreement increasing the net payment after tax.
For more detail on statutory rights, visit gov.uk: redundancy rights.
What if your employer’s legal fees offer is too low?
First, get a written estimate from your solicitor. Then:
- Tell your employer, attaching the breakdown
- Explain their contribution does not meet the legal requirement
- Request an increase based on your solicitor’s evidence
If the employer refuses, decide if paying the balance is worthwhile based on the value of your settlement.
Never rush—time pressure to sign can be used by employers to push through low contributions. An unsigned agreement is not binding: keep negotiating until you are satisfied on terms and fees.
See further practical guidance in our client success stories.
Do I have to pay settlement agreement solicitor fees myself?
If your employer refuses to contribute, you must pay settlement agreement solicitor fees for the mandatory advice and certificate. This is rare, but can happen in smaller organisations or where settlement amounts are very low. Always get a fixed fee quote and weigh this cost against the peace of mind and certainty solicitor advice provides.
A client chose to pay a £400 fixed fee when the employer offered nothing for legal costs. The settlement was completed and the client moved on quickly, having secured their rights.
You can find more on legal fee structures at our funding page.
Options if your employer refuses to pay
If the employer insists on paying nothing:
- Consider walking away and pursuing claims at the Employment Tribunal
- Self-fund the legal fee to get the agreement signed and guarantee your settlement
Explaining the legal requirement for solicitor certification often reverses employer refusals.
Reference gov.uk settlement agreements or official ACAS guidance in your conversation—highlight that legal funding is a professional standard, not an indulgence.
Paying the difference when the employer’s contribution falls short
If the employer’s cap is below your solicitor’s actual fee:
- Accept the amount and pay the remaining balance yourself
- Attempt to negotiate the difference before finalising
The legal fee should be considered in the context of your overall settlement amount.
| Scenario | Employer Pays | You Pay |
|---|---|---|
| Employer covers total solicitor fee | Yes | No |
| Employer covers part of fee | Yes (part) | Yes |
| Employer pays nothing | No | Yes |
A client accepted a £350 contribution for a £425 fee. She paid £75 but secured peace of mind given her settlement exceeded £10,000.
For clear, fixed fees or advice about partial funding, book an ILA appointment online.
Tax on settlement agreement payments: What do you need to know?
Some payments in a settlement agreement are tax-free, others are not. The first £30,000 of ex gratia (genuine compensation) payments are tax-free, but notice pay (including PILON or PENP), holiday pay, and bonuses are always taxable. Structuring your agreement correctly avoids surprise tax deductions.
Examine every payment label. Mistakes or unclear drafting can mean you pay more tax than necessary. Always seek to have a tax indemnity clause in your agreement.
Read more in the official HMRC tax on leaving payments guidance.
Is my settlement agreement payment tax-free up to £30,000?
Yes, ex gratia payments up to £30,000 are tax-free if they do not relate to salary, notice, or benefits. Amounts above £30,000 are subject to income tax, although National Insurance is not usually charged. PILON, PENP, holiday pay, and bonuses must always have tax and National Insurance deducted.
| Payment Type | Tax-free (up to £30,000)? | Taxable? |
|---|---|---|
| Ex gratia (compensation) | Yes | Above £30,000 |
| Notice pay / PILON / PENP | No | Yes |
| Accrued holiday pay | No | Yes |
| Contractual bonus | No | Yes |
A client’s agreement gave £20,000 tax-free compensation, £6,000 taxed notice pay, and £1,500 taxed holiday pay—all clearly stated to prevent disputes and error.
Check calculation rules on the Settlement Agreement Calculator or gov.uk’s tax on leaving guidance.
What counts as notice pay, PILON or PENP and how does tax apply?
Notice pay is money you get for your contractual/statutory notice period. If your employer makes a Payment In Lieu Of Notice (PILON) or applies Post-Employment Notice Pay (PENP), these amounts are taxable under current HMRC rules—even if described differently in your agreement.
If your contract has a PILON clause, the PILON sum will always be taxed. Ensure your agreement itemises notice payments and that correct tax deductions are made to avoid surprises.
Review further details on gov.uk’s notice pay information. For fast guidance, call us on 0800 054 1144 or book online. We cap fees to what your employer pays unless you approve extra work.
Key clauses, risks, and what your solicitor checks for
When reviewing your settlement agreement, our solicitor scrutinises all clauses—restrictive covenants (limits on future work), confidentiality, reference wording, tax indemnities, and waivers. Risks include excessive restrictions on future roles, unclear tax terms, or unfair reference/indemnity clauses.
Our solicitors ensure you receive all pay you’re entitled to, that restrictive covenants are limited and fair, and that references and indemnities don’t give your employer an unfair advantage or expose you to future risk.
A senior manager’s agreement restricted him from working at any UK competitor for a year. Our solicitor negotiated a reduction to six months and a limited area, making future job opportunities possible.
Discover more on avoiding common traps in our client success stories.
Restrictive covenants and your future employment rights
Restrictive covenants prevent you from working for or soliciting clients or staff from your previous employer, usually for a set period. These must be precise and not overly broad, or they may be unenforceable and limit your options unfairly.
Ask your solicitor to check these closely; compare them to any in your existing contract and ensure they don’t block reasonable career moves. We negotiate reasonable boundaries so you keep your options open.
For more information, see ACAS guidance on employment contracts and our performance exits page.
Confidentiality clauses, references, and tax indemnities
Confidentiality terms ban you from discussing details of your settlement or departure and can sometimes prevent whistleblowing. Reference clauses fix what will be supplied to future employers. Tax indemnities pass future HMRC claims to you if tax was wrongly deducted.
Our solicitors ensure you’re not unfairly restricted or liable, and that reference wording is agreed in writing for future job searches.
A client’s initial draft simply said “no reference will be given.” After negotiation, we added a neutral, factual reference, greatly improving her prospects.
See more advice on references and confidentiality on our Whistleblowing & Protected Disclosures page.
The settlement agreement signing process: Step by step
Here’s how the process works:
- Employer sends you a draft agreement.
- You submit it to our solicitors for review.
- Our solicitor explains terms, negotiates if needed, and checks compliance.
- Once ready, you and our solicitor sign—the solicitor prepares the mandatory certificate.
- Certificate and agreement are returned to your employer.
- You receive your settlement payment and reference.
Most agreements complete within 24–48 hours, especially if your employer funds the advice.
Always save copies of your signed agreement and the solicitor certificate for future reference—they are essential in the event of a dispute.
For redundancy-specific queries, visit our Redundancy page or Redundancy Calculator.
How remote, same-day independent legal advice works
You can access our settlement agreement advice entirely remotely, anywhere in England and Wales. After booking online or by phone, you email us your agreement. Our solicitor reviews it and calls you by phone or Teams. Once discussed and agreed, the documents are signed digitally and emailed to you and your employer.
A Manchester client booked in the morning, completed their Teams call, and signed by lunchtime—no travel or delay, and she accepted a new role the same day.
Learn more on our Book ILA online page.
Why Choose Settlement Agreement Lawyers?
Free to employee—employer pays or fee capped at contribution
Our settlement agreement advice is free to employees: your employer pays the legal fee. If a cap is set, our fee is capped too, so you never pay more unless you request extra work. This makes the process financially risk-free and transparent.
Send us your draft before you sign or resign—if your employer is paying, your risk is zero. We always work within employer funding unless extra work is agreed upfront. See more on our employee funding page.
Same-day remote service anywhere in England and Wales
We deliver same-day, nationwide settlement agreement advice and certification via video or phone, with secure online document sharing and signature. Whether in a city or rural area, you receive speedy, expert support so nothing delays your next career step.
A client in Devon on garden leave got an urgent Teams meeting, certificate issued in one hour, and immediate employer payment—facilitating a quick transition to a new job.
Read real outcomes in our client success stories.
SRA-regulated, negotiation experts, and 1,400+ five-star reviews
Settlement Agreement Lawyers is regulated by the Solicitors Regulation Authority (SRA) and offers unrivalled experience negotiating best-possible settlements for employees of every seniority. Our approach prioritises your needs, not your employer’s instructions.
Always choose SRA-regulated solicitors for settlement agreement advice—your financial future relies on ethical, expert, regulated support.
Frequently Asked Questions
How much will settlement agreement solicitors charge if my employer doesn’t pay?
Typically, solicitor fees range from £300 to £500 plus VAT for standard settlement agreement advice, rising to £600–£900 for complex cases. Fees are usually fixed or capped and relate only to legal advice and certification, not general employment law advice.
Do I have to use my employer’s chosen solicitor?
No, you are entitled to appoint your own independent solicitor. Independent legal advice is required by law; the employer cannot insist you use their recommended provider.
Can I negotiate my employer’s legal fee contribution?
Yes, you can negotiate. If your case is complex, provide your employer with a written fee estimate from your solicitor. Most employers agree to increase their contribution once it’s clear what is legally required.
Is the settlement agreement advice ever free for employees?
Yes, settlement agreement advice is usually free for employees because employers normally pay your solicitor’s fee as part of the agreement. Confirm this with your employer and solicitor before proceeding.
What happens if my employer only pays part of my solicitor’s bill?
If your employer’s contribution is lower than the solicitor’s fee, you can either pay the difference yourself or try to negotiate a larger contribution. The solicitor will usually cap their fee to the employer’s contribution unless extra services are specifically agreed.
Do settlement agreement payments always qualify for the £30,000 tax-free exemption?
No, only genuine ex gratia payments qualify for the tax-free exemption up to £30,000. Contractual sums such as notice pay, holiday, or bonuses must be taxed. Your solicitor will confirm which elements attract tax and which don’t.
What if I refuse the settlement agreement or legal fee contribution is too low?
You may decide not to sign and instead issue claims at the Employment Tribunal, but most employers increase their fee offer when legal requirements are explained. Our solicitors can help you negotiate.
How quickly can my settlement agreement be completed?
Most standard settlements are reviewed, discussed, signed, and returned within 24–48 hours—same-day service is available if urgent. Our solicitors work entirely remotely for your convenience.
Understanding how much solicitors charge for settlement agreement advice if your employer does not pay is crucial for protecting your rights and avoiding hidden costs. Standard fees range from £300–£500 plus VAT, with higher costs only for very complex agreements. Our solicitors ensure you know all your entitlements, tax treatment, and negotiating strategies around employer contributions. For same-day, remote appointments or to clarify fees and funding, phone Settlement Agreement Lawyers on 0800 054 1144 or book your settlement agreement advice online.
