My Employer Wants Me to Sign a Settlement Agreement Quickly. What Should I Do?

The short answer

You do not have to sign a settlement agreement just because your employer has set a deadline. A settlement agreement is voluntary, and you can ask for more time, seek independent advice and negotiate the terms. Acas says a reasonable period should be allowed. As a general rule, its Code recommends at least 10 calendar days to consider the formal written terms and receive advice, unless both sides agree otherwise. That is guidance, not a fixed statutory minimum in every case. 

Do not ignore the offer or assume it will remain open indefinitely. Reply promptly in writing, ask the employer to confirm the deadline and request a reasonable extension. Before signing, make sure you understand the payment, the claims you would waive and any obligations that continue after your employment ends. 

What is a settlement agreement?

A settlement agreement is a written contract between an employer and an employee or worker. It may set out the terms for ending employment or settle a workplace dispute while employment continues. In return for the agreed terms, the individual usually agrees not to bring specified legal claims covered by the agreement. 

For an agreement to waive most statutory employment claims, legal conditions must be met. These include receiving advice from an appropriately qualified independent adviser on the agreement’s terms and effect. The adviser must be identified in the agreement and have the required insurance or indemnity cover. Independent advice is not a formality: it is the opportunity to understand the effect of the waiver and the specific agreement in front of you.

How much time should I get to consider it? 

Acas says an employer should give you a reasonable amount of time to consider the written offer and get independent advice. Its Code of Practice says that, as a general rule, at least 10 calendar days should be allowed for the formal written terms and advice, unless the parties agree otherwise. The Code also recognises that what is reasonable depends on the circumstances. 

A shorter period does not automatically make the agreement invalid. But a very short deadline, particularly where you are being pressed to sign without advice, may raise concerns about undue pressure. A longer period may be appropriate if the agreement is lengthy, the issues are complex, you need to obtain documents or you require a reasonable adjustment to access advice. 

If the deadline is too short, write back as soon as possible. State that you are considering the offer, need time to obtain independent advice and request a specific new date. Keep a copy of the offer and all related messages. 

What should I do if I am being rushed?

1. Do not sign until you understand the terms 

Once signed, a valid settlement agreement can prevent you from bringing the claims listed in it. Do not sign on the basis of an assurance that a clause “is standard” or can be changed later. Ask for any promised change to be included in the written agreement before you sign. 

2. Ask for a reasonable extension in writing 

You can say that you need a reasonable period to review the formal terms and obtain independent advice. If the employer has set a deadline shorter than 10 calendar days, you can refer politely to the Acas Code and ask for the usual consideration period. The exact time needed depends on your circumstances. 

3. Get independent legal advice promptly 

A solicitor can explain the effect of the agreement and the claims it lists. Depending on the instructions you agree, they may also review the proposed payment and other terms, advise on your options and negotiate amendments. Check whether the employer is contributing to your legal fees and what that contribution covers. The employer is not generally required to pay every cost. 

4. Check the whole package, not just the headline figure 

Check how the agreement deals with salary, notice or payment in lieu of notice, accrued holiday, bonus or commission, redundancy pay if relevant, any additional compensation, the payment date and tax deductions. Also review the termination date, agreed reference, benefits and pension arrangements, confidentiality wording, return of property and any restrictive covenants. The tax treatment depends on the type of payment and your circumstances. 

5. Ask questions and consider a counter-offer 

You can ask the employer to explain the proposal and can make a counter-offer. Negotiation may cover the financial payment, notice, reference, termination date, legal fee contribution or other terms. Whether there is room to improve the offer depends on the facts and the employer’s position. No particular outcome can be guaranteed. 

6. Keep an eye on employment tribunal time limits 

Settlement discussions do not automatically stop tribunal time limits. If you may have a claim, get advice promptly about the applicable deadline and whether to notify Acas for early conciliation. The time limit rules are changing from 1 October 2026 for most claims, and the applicable period depends on when the time limit starts. Do not assume that a settlement offer or a request for more time protects your position. 

Does “protected conversation” mean I cannot refer to what happened?

Not necessarily. Settlement discussions are often described as “protected conversations” or marked “without prejudice”, but those labels do not make every conversation confidential in every situation. Section 111A of the Employment Rights Act 1996 generally concerns evidence in an unfair dismissal claim, and the without prejudice rule has its own requirements. Exceptions can apply, including where there is improper behaviour or where the claim is not an unfair dismissal claim. If you have concerns about discrimination, whistleblowing, harassment or pressure, get advice before assuming the discussion cannot be referred to. 

The Acas Code gives examples of possible undue pressure, including failing to allow reasonable consideration time or saying that an employee will be dismissed if they reject the proposal before any disciplinary process has begun. Whether conduct is improper depends on the facts. Being offered an agreement quickly does not by itself establish that the employer has acted unlawfully. 

What if I refuse to sign?

You are entitled to refuse a settlement agreement or make a counter-offer. If no agreement is reached, the employer may continue with an appropriate workplace process, such as redundancy consultation or a disciplinary process, where relevant. It must still follow applicable legal requirements and should not treat settlement discussions as a substitute for a fair process. 

Before deciding, consider both the proposed terms and the realistic alternatives. A solicitor can help assess the agreement and explain what further advice may be useful about the underlying employment issue. 

A short email you can send your employer

“Thank you for sending the proposed settlement agreement. I am considering the offer and would like a reasonable period to review the written terms and obtain independent advice. Please confirm that the deadline will be extended to [date]. I may come back with questions or proposed amendments after taking advice.” 

Adapt this message to your circumstances. If a tribunal deadline may be approaching, seek urgent advice rather than waiting for the employer’s response. 

Frequently asked questions

Is 10 days a legal minimum? 

No. Acas’s Code says that at least 10 calendar days should be allowed as a general rule for considering the formal written terms and obtaining advice, unless both sides agree otherwise. It is not a statutory minimum that applies automatically in every case. A reasonable period depends on the circumstances. 

Can my employer make me sign a settlement agreement? 

No. Settlement agreements are voluntary. You can refuse the offer or negotiate. Your employer may continue with an appropriate employment process if no agreement is reached, but must comply with its legal obligations. 

Can I negotiate the offer? 

Yes. You can ask questions or propose changes to payment, notice, a reference, the termination date, legal fees or other terms. The employer does not have to accept a counter-offer, and an offer may be time-limited or withdrawn in accordance with its terms. 

Does the employer have to pay for my solicitor? 

There is no general legal requirement for the employer to pay all your legal costs. Many employers offer a contribution towards the advice required for the agreement. Check the amount and whether it covers only advice on the agreement or also negotiation and wider advice. 

Do settlement discussions stop the time limit for an employment claim? 

No. Settlement discussions do not, by themselves, pause an employment tribunal time limit. Acas early conciliation can pause the time limit in some circumstances if you notify Acas within the applicable period. The rules are changing for most claims from 1 October 2026, so obtain advice on the deadline that applies to your case. 

Disclaimer

This article is for general information only. It is not legal or tax advice and does not create a solicitor-client relationship. Employment law is fact-specific and may change. The law stated is that of England and Wales and must be checked before publication. Obtain advice on your circumstances before signing or relying on a settlement agreement.