Last Updated: 17 August 2026 I Reading Time: 6 minutes
Summary
Being told that your role is at risk of redundancy can be stressful, particularly after many years with the same employer. Understanding your rights and having independent legal advice can help you make an informed decision about what happens next.
In this case, our client, referred to as H, had worked for his employer for 15 years when he was facing redundancy. GLP Solicitors advised H and negotiated with his employer to reach a mutual settlement agreement that he was very happy with.
H later shared his experience of working with Olivia Hartley, praising the clear communication, professionalism and support he received throughout his case.
Quick answer
If your employer is proposing redundancy, you may be offered a settlement agreement as an alternative way to end your employment. A solicitor can review the proposed terms, explain your rights and negotiate with your employer where appropriate. In H’s case, GLP Solicitors negotiated a mutual settlement following his employer’s proposed redundancy after 15 years of service, resulting in an agreement he was very happy with.
In this article
- What happened in H’s case
- What is a settlement agreement?
- How settlement agreements can be used during redundancy
- Why independent legal advice matters
- What a solicitor can negotiate
- H’s experience with GLP Solicitors
- How GLP Solicitors can help
- Frequently asked questions
Key takeaways
- Redundancy does not always mean you have to accept your employer’s first proposal.
- A settlement agreement can provide an agreed way for an employment relationship to end.
- Settlement agreements are legally binding once properly agreed and signed.
- Employees must receive independent legal advice before signing a settlement agreement.
- A solicitor can review the proposed agreement and advise on whether the terms are appropriate.
- Legal advice can also include negotiating improved terms with the employer.
- H had 15 years’ service when his employer proposed redundancy.GLP Solicitors negotiated a mutual settlement that H was very happy with.
Facing redundancy after 15 years of service
Redundancy can be difficult at any stage of your career. After 15 years with the same employer, the prospect of losing your job can be particularly unsettling.
Our client, H, came to GLP Solicitors after his employer was seeking to make him redundant.
Rather than simply accepting the proposed outcome, H sought legal advice about his position and the options available to him.
Our Employment Team advised H throughout the process and negotiated with his employer to reach a mutual settlement agreement.
The result was an agreement that H was very happy with.
What is a settlement agreement?
A settlement agreement is a legally binding agreement between an employer and employee. It is commonly used to resolve or settle particular employment issues, often where the employment relationship is coming to an end.
Under a settlement agreement, an employee may agree not to pursue certain legal claims against their employer in return for agreed terms, which can include a financial payment.
Settlement agreements can arise in a range of situations, including:
- Redundancy situations
- Workplace disputes
- Negotiated exits
- Grievances
- Allegations of discrimination
- Unfair dismissal concerns
- Changes to employment arrangements
The terms of each agreement are different, so it is important to understand exactly what you are agreeing to before signing.
Can a settlement agreement be used instead of redundancy?
A settlement agreement can be used where an employer and employee agree on the terms under which the employment relationship will end.
This can sometimes provide an alternative to going through a full redundancy process, although the circumstances and legal position will depend on the individual case.
For an employee, the agreement may provide greater certainty over matters such as:
- The date employment will end
- Any compensation payment
- Notice arrangements
- Holiday pay
- Benefits
- An agreed reference
- Confidentiality provisions
- The treatment of existing or potential employment claims
The terms offered by an employer are not necessarily the terms you have to accept.
This is one reason why obtaining independent legal advice before signing can be important.
Why should you get legal advice before signing?
Settlement agreements must meet certain legal requirements to be valid. One of those requirements is that the employee receives independent legal advice on the agreement.
A solicitor can explain the document in straightforward terms and help you understand what rights you may be giving up.
They can also consider whether the proposed settlement properly reflects your circumstances and whether there are terms that should be changed.
This is particularly important where you have worked for an employer for many years or believe you may have potential employment claims.
What can a solicitor negotiate in a settlement agreement?
An employer may initially present a settlement agreement with proposed terms. However, this does not necessarily mean the negotiation is finished.
Depending on the circumstances, a solicitor may be able to negotiate matters such as:
Financial compensation
The proposed settlement payment can be reviewed against the circumstances of the employment relationship and the potential claims involved.
Notice and termination arrangements
The agreement may deal with your notice period and the date on which your employment will end.
Holiday pay and other entitlements
Any outstanding holiday or other contractual payments should be considered when reviewing the agreement.
References
Where appropriate, the agreement may include provisions concerning the wording or provision of a future employment reference.
Other contractual terms
A settlement agreement can contain a range of additional provisions. These should be reviewed carefully so that you understand what you are agreeing to.
The right approach will depend on the individual’s circumstances and the terms proposed by the employer.
A successful negotiated outcome for H
In H’s case, his employer was seeking to make him redundant after 15 years of service.
GLP Solicitors provided advice on his position and negotiated with the employer on his behalf.
The discussions resulted in a mutual settlement agreement that H was very happy with.
This demonstrates why employees should not necessarily feel that they have to accept the first terms presented to them.
Getting advice early can help you understand your options and identify whether there is scope to negotiate a more suitable outcome.
What did our client say?
Excellent trustworthy company
I came across the company online and wasn’t sure what to expect. From the moment I got in touch, I felt reassured and confident I was in safe hands. Olivia Hartley was assigned to my case, and she guided me through every step with empathy, clarity, and care. My case was handled professionally and efficiently, and I was kept informed throughout the entire process. Everything was put together thoughtfully and with real attention to detail. I would 100% recommend this company to anyone in need of legal advice.
We are grateful to H for taking the time to share his experience.
What should you do if your employer offers you a settlement agreement?
If you receive a settlement agreement, it is important not to feel pressured into signing immediately.
Consider taking the following steps:
- Read the agreement carefully.
- Check any deadline given by your employer.
- Seek independent legal advice.
- Ask your solicitor to explain anything you do not understand.
- Discuss whether the proposed terms are appropriate for your circumstances.
- Consider whether there is scope to negotiate different terms.
- Do not sign until you are comfortable with the agreement and have received the necessary legal advice.
Your employment situation is unique, so advice should be based on the specific circumstances and terms of your proposed agreement.
How GLP Solicitors Can Help
GLP Solicitors’ Employment Team advises employees on settlement agreements, including situations involving redundancy and negotiated exits.
We can help by:
- Reviewing the proposed settlement agreement
- Explaining the terms and their implications
- Advising on your employment rights
- Identifying potential issues with the agreement
- Negotiating with your employer where appropriate
- Helping you understand the practical and financial implications of the proposed settlement
Our aim is to make the process as clear as possible, so you can make an informed decision about your employment.
If your employer has offered you a settlement agreement, it is important to obtain independent legal advice before signing.
Frequently Asked Questions
A settlement agreement is a legally binding agreement between an employer and employee that can be used to agree the terms on which employment will end. It may be used during a redundancy situation where both parties want to reach an agreed outcome. The agreement can cover matters such as compensation, notice, holiday pay and other terms. An employee must receive independent legal advice before signing a settlement agreement.
Yes. A settlement agreement is generally a matter of negotiation between the employer and employee. The initial terms offered by an employer do not necessarily have to be accepted as they are. Depending on the circumstances, a solicitor may negotiate matters such as compensation, termination arrangements, references and other contractual provisions.
No. An employee does not have to agree to a settlement agreement simply because their employer has offered one. However, the consequences of refusing an agreement will depend on the circumstances. For example, the employer may continue with a redundancy process. Independent legal advice can help you understand your options before deciding whether to accept, reject or negotiate the proposed agreement.
Yes, an employee must receive advice from an independent adviser before a settlement agreement can be legally binding. The adviser must meet certain requirements, and a solicitor is commonly used. The solicitor should explain the terms of the agreement and its effect on the employee’s rights. They can also advise on whether the proposed terms are appropriate and negotiate changes where necessary.
There is no single amount that every employee should receive. The value of a settlement can depend on factors including salary, length of service, notice arrangements, potential employment claims and the circumstances in which the employment is ending. A solicitor can review the proposed payment alongside the wider terms of the agreement and advise you on whether the offer appears appropriate.
Yes. Length of service does not prevent an employee from entering into a settlement agreement. In fact, a long period of employment can be an important factor when considering the employee’s circumstances and potential rights. In H’s case, he had worked for his employer for 15 years when redundancy was proposed and GLP Solicitors negotiated a mutual settlement on his behalf.
Yes. Settlement agreements can be used in redundancy situations. They can provide a way for an employer and employee to agree the terms of the employee’s departure. However, the suitability of a settlement agreement depends on the circumstances, and employees should obtain independent legal advice before signing.