Settlement Agreement Review — what actually matters.
A settlement agreement (formerly a compromise agreement) ends your employment and waives your right to bring claims in an employment tribunal. This is permanent and legally binding — once signed, you cannot change your mind. Understanding exactly what you're agreeing to is essential.
Claims being waived
Settlement agreements waive specific claims — unfair dismissal, discrimination, unpaid wages. We explain exactly which claims you're giving up and whether any are excluded.
Tax treatment
Payments up to £30,000 may be tax-free. How the payment is structured matters. We flag any clauses that affect the tax treatment of your settlement.
Reference & restrictive covenants
Many settlements include an agreed reference wording and ongoing restrictive covenants. We explain what you're agreeing to say — and not say.
How it works
Results in seconds. Not 24 hours.
Paste or upload your contract. Our AI reads every clause, flags risks, cites the relevant UK statute, and tells you exactly what to push back on — instantly.
Common questions
FAQs
Do I need a solicitor for a settlement agreement?
By law, you must receive independent legal advice from a qualified adviser for a settlement agreement to be valid. ContractChecker can help you understand the terms before that meeting.
Is the £30,000 tax-free limit still in force?
Yes, as of 2025. Payments up to £30,000 in termination of employment are generally tax-free. Payments in lieu of notice (PILON) are always taxable.
Can I negotiate a settlement agreement?
Yes — the initial offer is rarely the final offer. Our analysis shows you which terms are non-standard and worth pushing back on.
What is an "all claims" waiver?
A clause that waives all claims you could bring, known or unknown, against the employer. We explain what this means for you specifically.
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