The short answer is yes — and this is not simply good advice. It is a legal requirement. A settlement agreement is only valid and enforceable under UK legislation if you have received independent legal advice from a qualified adviser before signing it. Without that advice, the agreement cannot be used to waive your statutory employment rights, which means it offers your employer little or no protection — and you no certainty.
This guide explains why the law requires you to take legal advice, what a solicitor actually does in this process, what it will cost you, and how to find the right person.
Why Does the Law Require Independent Legal Advice?
The requirement for independent legal advice is set out in section 203 of the Employment Rights Act 1996 amongst other statutes. The purpose is straightforward: a settlement agreement asks you to give up statutory employment rights — rights that Parliament has decided employees should have. The law takes the position that you should not be able to waive those rights unless you have had proper, independent qualified advice about what you are giving up and whether it is in your interests to do so.
The word ‘independent’ is important. The solicitor advising you must not be acting for your employer. They must be acting solely in your interests. This alongside the other conditions necessary for a binding settlement agreement, is what gives the process its integrity — and what makes the waiver of your rights legally effective.
What Happens If You Sign Without Legal Advice?
If you sign a settlement agreement without having received independent legal advice from a qualifying adviser, the agreement will not be legally valid. This means:
- You would not have effectively waived your employment claims
- You could still bring claims in the employment tribunal, even after signing
- Your employer would have no certainty that the matter is resolved
In practice, no reputable employer — or their solicitors — will allow a settlement agreement to be signed without confirmation that the employee has taken independent advice. The agreement itself should contain a clause confirming that this has happened.
Who Qualifies as an Independent Legal Adviser?
The legislation sets out who can provide the required independent advice. The most common in practice is a qualified solicitor holding a current practising certificate. However, the following also qualify:
- A barrister
- A Fellow of the Chartered Institute of Legal Executives (FCILEx)
- A trade union official who has been certified by the union as competent to give this advice
- An advice centre worker certified as competent by the centre
For most employees, a solicitor is the practical choice — and specifically one with expertise in employment law. General practice solicitors or conveyancing solicitors are technically qualified to sign off a settlement agreement, but an employment specialist will give you far more useful advice about whether the terms on offer are fair.
What Does a Solicitor Actually Do?
The legal minimum is that a solicitor advises you on the terms and effect of the agreement — specifically, the claims you are waiving. But an employment solicitor can:
- Explain the agreement in plain English — going through it clause by clause so you understand exactly what you are agreeing to
- Assess the strength of any claims you have — so you understand what you may be giving up and whether the financial offer reflects that
- Advise on whether the financial offer is reasonable — in the context of your specific circumstances and what a tribunal might award
- Identify anything missing from the agreement — such as an agreed reference, continuation of benefits, or treatment of a bonus
- Negotiate on your behalf if appropriate — for example a solicitor can write to your employer to seek improved terms before advising you to sign
- Sign the adviser’s certificate — the formal confirmation within the agreement that independent advice has been given, which makes the agreement legally effective
Who Pays the Solicitor’s Fees?
It is standard practice — and widely expected — for your employer to make a contribution towards your legal costs. This contribution will usually be specified in the settlement agreement itself. In 2026 the typical amount is around £500 to £750 plus VAT, though this varies.
In straightforward cases, where the agreement is relatively standard and no significant negotiation is required, a £500 ex VAT contribution will often cover the solicitor’s fees in full. In more complex cases — for example, where there are discrimination claims, a significant financial package, or extensive negotiation — the likely time involvement and therefore the fees may exceed the employer’s contribution. If you require advice on the merits of your claims and /or negotiation assistance, you may therefore be asked to pay the difference (or all of the costs if you elect not to sign the settlement agreement).
Always ask the solicitor at the outset what their fees are likely to be and whether the employer’s contribution will cover them. An employment solicitor should be clear and transparent about their fees from the start.
Does Using a Solicitor Mean the Process Becomes Adversarial?
Most settlement agreement advice is conducted professionally and without conflict. A collaborative approach helps everyone and usually means a quicker and sensible agreement on changes to the written terms. The solicitor’s role is to advise you — not to cause trouble.
That said, if your solicitor identifies that the offer is significantly below what you could achieve at tribunal, or that important terms are wrong or missing, that will often mean amendment requests. Persuasion is often better than force.
How Do You Find the Right Solicitor?
If you’re in need of settlement agreement advice I’m temped to say your job is done if you’re reading this article! But in general terms, the guidance is common sense: look for a solicitor who specialises in employment law and has a experience of settlement agreements specifically. John Hassells, the founder of this site, has been acting for clients on employment law matters and settlement agreements for over 20 years. That build up of tacit knowledge and experience is useful to access if you’re an employee wanting employment law advice. Word of mouth is also reliable, if someone can recommend a good solicitor.
Avoid the temptation to use a solicitor simply because they are cheap or convenient. A local high street solicitor might be easy to see but they may not be a true employment law specialist. Going to someone that dabbles is not something we’d suggest. The quality of advice you receive at this stage can have a real impact on the outcome.
Key Takeaways
- Independent legal advice from a qualified adviser is a legal requirement — without it, a settlement agreement is not a valid statutory settlement agreement.
- The legal adviser must be independent of your employer and acting solely in your interests.
- A good employment solicitor will do far more than sign off the paperwork — they check the terms, spot and discuss what’s missing, and tap into their years of employment law expertise.
- Your employer will typically contribute around £500–£750 plus VAT towards your legal fees. Based on experience, £500 ex VAT is pretty common in 2026.
- Use a solicitor who specialises in employment law — this is not the moment for a generalist.
Legal Disclaimer
The contents of this article are intended to be be for general information purposes only and do not amount to (nor are they intended to be) legal, tax or financial advice or a complete or authoritative statement of the law nor should they be treated as such. No warranty or promise is given, express or implied, as to accuracy of the information on this page and no liability is accepted for any error or omission. You should instruct a specialist employment solicitor to advise you on your particular situation and not act or rely on the information on this page.