Last update: 28 July 2026 I Reading time: Approximately 6 minutes
Summary
If you’ve been offered a settlement agreement, you may have heard that employers must give you 10 days to consider it before signing. While this is widely recommended by Acas, recent guidance from the Employment Appeal Tribunal has confirmed that the 10-day period is guidance rather than a strict legal requirement.
Instead, tribunals will consider the overall circumstances of each case. This includes whether the employee was placed under undue pressure, whether they had a genuine opportunity to obtain independent legal advice, and whether the employer acted fairly throughout the process.
For both employers and employees, understanding this distinction is important. A rushed agreement could still be challenged if the circumstances surrounding it were unfair.
Quick answer
No. There is no legal rule requiring employers to give employees exactly 10 days to consider a settlement agreement. Acas recommends allowing at least 10 calendar days as good practice, but the Employment Appeal Tribunal has confirmed this is guidance rather than a legal obligation. What matters most is whether the employee had a fair opportunity to consider the agreement, seek independent legal advice and make an informed decision.
In this article
- What is a settlement agreement?
- What has changed?
- Is the 10-day rule legally binding?
- Can an employer ask you to sign sooner?
- What counts as undue pressure?
- Practical examples
- How GLP Solicitors can help
- Frequently asked questions
Key takeaways
- The 10-day consideration period is recommended by Acas but is not a legal requirement.
- The Employment Appeal Tribunal has confirmed tribunals will look at the overall circumstances.
- Employees should have a genuine opportunity to obtain independent legal advice.
- Employers should avoid placing employees under unnecessary pressure.
- Every settlement agreement must be considered on its individual facts. Independent legal advice remains a legal requirement before a settlement agreement becomes legally binding.
- Seeking legal advice before signing can help protect your rights.
What is a Settlement Agreement?
A settlement agreement is a legally binding contract between an employer and an employee that usually brings the employment relationship, or a workplace dispute, to an agreed conclusion.
In exchange for compensation or another agreed benefit, the employee typically agrees not to pursue certain legal claims against the employer.
Settlement agreements are commonly used in situations involving:
- Redundancy
- Workplace disputes
- Performance concerns
- Disciplinary issues
- Mutual termination of employment
What has changed?
The Employment Appeal Tribunal has recently clarified an issue that often causes confusion.
Acas guidance recommends that employers should normally allow employees at least 10 calendar days to consider a written settlement agreement.
However, the Tribunal has confirmed that this recommendation does not create a legal rule.
Instead, when disputes arise, tribunals will consider whether the process as a whole was fair.
This means there is no automatic requirement for exactly 10 days in every situation.
Does an employer have to give you 10 days?
Not necessarily.
The recommended 10-day period remains good practice and many employers continue to follow it.
However, if a shorter period is provided, that does not automatically make the agreement invalid.
Instead, relevant questions include:
- Were you given enough time to understand the agreement?
- Were you able to obtain independent legal advice?
- Did you feel pressured into signing?
- Did your employer behave reasonably throughout the process?
Each case will depend on its own facts.
Can an employer pressure you to sign?
An employer should never use improper behaviour to force an employee into accepting a settlement agreement.
Examples of behaviour that may raise concerns include:
- Threatening immediate dismissal without proper process.
- Refusing reasonable requests for time to obtain legal advice.
- Creating artificial deadlines designed solely to pressure the employee.
- Misleading an employee about their legal rights.
- Withdrawing an offer without allowing reasonable consideration.
If pressure is applied unfairly, a tribunal may take this into account when considering the circumstances surrounding the agreement.
Why does independent legal advice matter?
One of the key legal protections is the requirement for independent legal advice.
Your solicitor will explain:
- What rights you may be giving up.
- Whether the financial offer is reasonable.
- Any restrictive covenants.
- Tax implications where relevant.
- Confidentiality clauses.
- References and agreed wording.
- Any post-employment obligations.
Receiving independent advice helps ensure you understand exactly what you are signing.
Practical example
Sarah receives a settlement agreement following a workplace dispute.
Her employer asks her to respond within five days because the business is restructuring quickly.
Sarah immediately instructs a solicitor, who reviews the agreement, negotiates several improved terms and advises her before the deadline expires.
Although she had fewer than 10 days, she received proper legal advice, understood the agreement and was able to negotiate changes. In these circumstances, the shorter timescale alone would not necessarily make the process unfair.
By contrast, if Sarah had been told to sign within 24 hours without any opportunity to obtain legal advice, the situation could raise serious concerns about fairness.
What should employers do?
Employers should continue to follow good practice wherever possible.
This includes:
- Allowing sufficient time for consideration.
- Encouraging employees to seek legal advice.
- Avoiding unnecessary pressure.
- Explaining why any shorter deadline is genuinely required.
- Keeping clear records of the process.
A fair and transparent approach reduces the risk of future disputes.
What should employees do?
If you receive a settlement agreement:
- Do not feel rushed into signing.
- Read the document carefully.
- Obtain independent legal advice.
- Ask questions if anything is unclear.
- Consider whether the financial package reflects your circumstances.
- Discuss whether better terms can be negotiated.
Many settlement agreements are successfully negotiated before they are signed.
How GLP Solicitors can help
At GLP Solicitors, our experienced Employment Law team advises both employees and employers on settlement agreements.
We can:
- Explain your legal rights in plain English.
- Review the terms of your agreement.
- Negotiate improved financial or contractual terms where appropriate.
- Ensure the agreement complies with the legal requirements.
- Help employers prepare settlement agreements that are fair and legally robust.
Our aim is to help clients make informed decisions with confidence.
Frequently Asked Questions
No. The recommended 10-day period comes from Acas guidance rather than legislation. While many employers follow this recommendation, the Employment Appeal Tribunal has confirmed that it is not a strict legal requirement. The key question is whether you had a fair opportunity to consider the agreement and obtain independent legal advice.
Yes. If you need additional time to obtain legal advice or consider the terms, you can ask your employer for an extension. Many employers will agree to a reasonable request, particularly where it helps ensure the process is fair.
Yes. Settlement agreements are often negotiated. Financial compensation, notice pay, references, restrictive covenants, confidentiality clauses and other terms may all be capable of negotiation depending on your circumstances.
Generally, yes, unless a legally binding agreement has already been reached. However, employers should avoid using withdrawal as a tactic to pressure employees into signing quickly.
Yes. In most cases, a settlement agreement will only become legally binding if you receive independent legal advice from a qualified adviser. Many employers also contribute towards or pay the legal fees involved.
In many cases, yes. Employers commonly make a contribution towards the employee’s legal costs because independent legal advice is required before the agreement becomes legally binding. The amount varies depending on the circumstances.