Why Do I Need Independent Legal Advice?

If you’ve been offered a Settlement Agreement, you will almost always need to receive independent legal advice before it becomes legally binding.

This isn’t simply a formality or an administrative requirement. It is a legal safeguard designed to protect you.

By signing a Settlement Agreement, you are usually agreeing to give up certain legal rights, including the right to pursue specific claims against your employer in an Employment Tribunal or Court. Before you can waive those rights, the law requires you to receive advice from an independent legal adviser who can explain the agreement, your legal position and the consequences of signing it.

Independent legal advice ensures that your decision is informed, voluntary and made with a full understanding of your legal rights.

Why is independent legal advice required?

Settlement Agreements are governed by legislation which requires employees to receive advice from an independent adviser before the agreement can normally take effect.

The purpose of this requirement is to ensure that employees are not pressured into signing documents they do not fully understand.

Your solicitor acts entirely in your interests. Their role is to review the agreement objectively, explain its implications and advise whether the proposed terms appear reasonable in light of your individual circumstances.

Independent legal advice provides reassurance that your interests have been properly protected before the agreement becomes legally binding.

What will my solicitor do?

Many people assume that their solicitor simply signs a certificate confirming that legal advice has been given.

In reality, your solicitor’s role is considerably more important.

They will carefully review your Settlement Agreement and explain:

• What every significant clause means.
• Which legal claims you are agreeing to settle.
• Whether the financial package appears reasonable.
• Which payments are taxable.
• Whether restrictive covenants could affect your future employment.
• Whether confidentiality provisions are appropriate.
• Whether your employment reference should be amended.
• Whether there are clauses that should be negotiated before you sign.

Everything should be explained in straightforward language, giving you the opportunity to ask questions and understand exactly what you are agreeing to.

Can my solicitor negotiate a better Settlement Agreement?

Yes.

One of the biggest misconceptions surrounding Settlement Agreements is that the document presented by the employer represents the final offer.

That is often not the case.

Following a review of your agreement, your solicitor may recommend negotiating:

• Increased compensation.
• Payment of outstanding bonuses or commission.
• Enhanced notice arrangements.
• Improved wording of your employment reference.
• Amendments to confidentiality clauses.
• Changes to restrictive covenants.
• A different leaving date.
• Other contractual provisions that are important to your future plans.

Whether negotiation is appropriate depends upon your legal position, the circumstances surrounding your departure and your objectives.

Where there is a realistic opportunity to improve the agreement, Pepperells will discuss your options with you before any negotiations are undertaken.

Who pays for the legal advice?

In the majority of Settlement Agreement cases, your employer will contribute towards the cost of your independent legal advice.

Many employers agree to pay your solicitor’s fees in full where the matter is relatively straightforward. This allows you to receive independent legal advice without having to fund the legal costs personally.

If additional work is required, for example because extensive negotiations become necessary, your solicitor will explain any additional costs before they are incurred so that you can make an informed decision about how you wish to proceed.

Pepperells believes in complete transparency regarding legal costs, and we will always discuss fees with you at the earliest opportunity.

How quickly can advice be provided?

Settlement Agreements often contain deadlines, and we understand that many employees want certainty as quickly as possible.

Our Employment Solicitors regularly advise on Settlement Agreements and can often arrange appointments at short notice.

Advice can usually be provided:

• By telephone.
• By video appointment.
• In person at one of our offices.

Where your employer has requested that the agreement is completed urgently, please let us know. Wherever possible, we will work with you to meet any reasonable deadlines whilst ensuring that you receive the advice you need.

Peace of mind before you sign

Even where no changes are ultimately required, independent legal advice provides something that many clients value most—confidence.

Knowing that an experienced Employment Solicitor has reviewed the agreement, explained your legal rights and confirmed whether the terms appear fair allows you to make your decision with certainty.

Rather than wondering whether you have overlooked an important clause or accepted less than you should have done, you can move forward knowing that your interests have been properly protected.

That reassurance is one of the principal reasons why independent legal advice is a legal requirement for most Settlement Agreements.

Speak to a Specialist Solicitor

Before signing your Settlement Agreement, speak to one of Pepperells’ experienced Employment Solicitors.

We’ll explain the agreement in plain English, answer your questions honestly and, where appropriate, negotiate improved terms on your behalf.

Speak to a Specialist Solicitor

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