Getting a settlement agreement is stressful. Tight deadline, unfamiliar legal terms, an employer who suddenly wants you to sign. We have handled thousands. We will make it simple.
Redundancy settlement agreement? We review yours today, free.
- Free to you , your employer pays our legal fee
- Reviewed in 6 hours , even if your deadline is tomorrow
- We check every clause , non-competes, tax, references, everything
"Incredibly thorough — she explained each clause clearly and achieved a quick turnaround. I felt in safe hands throughout."
Getting a settlement agreement is stressful. Tight deadline, unfamiliar legal terms, an employer who suddenly wants you to sign. We have handled thousands. We will make it simple.
- Free to you , your employer pays our legal fee
- Reviewed in 6 hours , even if your deadline is tomorrow
- We check every clause , non-competes, tax, references, everything
"Incredibly thorough — she explained each clause clearly and achieved a quick turnaround. I felt in safe hands throughout."
Sarah, Consultant Solicitor
SRA-Regulated · 25+ yrs' employment law
Redundancy and settlement agreements: what's really going on
If you are being made redundant and your employer has put a settlement agreement in front of you, it helps to understand why. A genuine redundancy gives you certain rights: a fair selection process, meaningful consultation, a search for suitable alternative roles, and statutory redundancy pay. All of that takes time, and it leaves room for disputes about whether the process was fair. A settlement agreement lets your employer draw a line under everything at once. In exchange for an agreed payment you waive your right to bring claims, including unfair dismissal, and both sides get a clean, confidential break.
That trade can be a good one, but only if the payment reflects what you are giving up. Employers offer settlement agreements during redundancy because they are faster than a full consultation process and they remove the risk of a tribunal claim later. The agreement usually comes with an enhanced payment, more than the statutory minimum, precisely because your employer is buying certainty and a quiet, agreed exit.
So the question is never simply whether it looks like a lot of money. It is whether the figure is fair once you account for everything you are legally owed and the strength of any claim you might have if the redundancy process was flawed. That is exactly what an independent review tells you. And because a settlement agreement is only binding once you have taken legal advice on it, your employer almost always pays for that advice.
Is your redundancy settlement fair? What we check
We read past the headline payment, because that is rarely where the risk is. On every redundancy settlement we review, we work through each of these before telling you plainly whether the offer is fair, low, or worth challenging.
- Your statutory redundancy floor. Whether you have been paid at least the statutory redundancy you are entitled to, based on your age, length of service and weekly pay up to the statutory cap.
- Notice and pay in lieu. Whether you are getting your full notice period, or the correct pay in lieu of notice, and how that part is being taxed.
- The enhanced payment. Whether the extra on top of your statutory entitlement is genuinely fair for your situation, or simply repackages money you are already owed.
- The £30,000 tax-free line. How the payment is split, since a genuine redundancy or termination payment is normally tax-free up to £30,000 while notice, holiday and bonus are taxable.
- Holiday, bonus and commission. Any accrued but unpaid amounts that should be paid on top of the settlement, not quietly absorbed into the headline figure.
- An agreed reference. A fair reference, ideally attached to the agreement in full, alongside a mutual non-derogatory clause rather than one that binds only you.
- Restrictive covenants. Non-compete and non-solicitation clauses that could limit your next role, and whether they are reasonable or open to negotiation.
- The claims you waive. Exactly which claims you give up, including unfair dismissal where the redundancy process may have been flawed, so nothing valuable is signed away cheaply.
Common questions about redundancy settlement agreements
Should I accept a settlement agreement instead of redundancy?
It depends on what the agreement offers compared with going through the redundancy process itself. In a settlement agreement your employer typically pays more than the statutory minimum in return for you waiving your claims, and you get certainty and a clean, confidential exit rather than weeks of consultation. That can be worthwhile. But a settlement offered instead of redundancy should still give you at least everything a redundancy would: statutory redundancy pay, full notice, accrued holiday, and a genuine extra on top. If the process leading to your redundancy looks flawed, you may also have an unfair dismissal claim that adds real negotiating weight. We compare the offer against both your redundancy entitlement and the strength of any claim, so you decide from knowledge rather than pressure.
What is a voluntary redundancy settlement agreement?
Voluntary redundancy is where your employer asks for volunteers to leave, often with an enhanced package, before or instead of compulsory selection. When you accept, that package is almost always documented in a settlement agreement so the terms are legally binding and your claims are waived. The key thing to check is what enhanced actually means for you: how the payment breaks down, whether your notice and accrued holiday are included or paid on top, and how much of it falls within the £30,000 tax-free band. Volunteering does not mean accepting the first figure without question. We review voluntary redundancy offers the same way we review any settlement agreement, and tell you whether the enhancement is genuinely worthwhile.
I've been made redundant and offered a settlement agreement. Is it fair?
The honest answer is that it depends on your salary, your length of service, the reason for the redundancy and how sound the process was. Start with your floor: statutory redundancy pay, full notice or pay in lieu, and any accrued holiday, bonus or commission. A fair offer sits meaningfully above that floor, with the extra reflecting the risk to your employer if the redundancy could be challenged as unfair. Offers that simply hand back money you are already owed, or that trade a large headline number for restrictive covenants, are often weaker than they look. Our free settlement calculator gives you an indicative range in about a minute, and a specialist review tells you where your actual offer should land.
Can I negotiate my redundancy settlement?
Often, yes. The first figure is rarely the ceiling, particularly where the redundancy process had gaps, where you were selected on questionable criteria, or where there is any hint of discrimination. Negotiation works best when it is grounded in something concrete rather than simply asking for more: a procedural failing, a selection pool or scoring that does not stand up, or the commercial value to your employer of a fast, confidential exit. A measured, well-reasoned counter tends to achieve more than an aggressive one. We assess what a realistic uplift looks like for your circumstances and, where you want us to, handle the negotiation for you. We are also straight with you when an offer is already strong and pushing harder risks little.
How is a redundancy settlement agreement taxed?
It depends on what each part of the payment is for. A genuine redundancy or termination payment, meaning compensation for losing your job rather than for work done, is normally tax-free up to £30,000 under the usual termination rules, and statutory redundancy pay counts towards that allowance. Anything above £30,000 is taxed as income, and National Insurance can apply to part of it. Payment in lieu of notice, accrued holiday, bonuses and ordinary salary, by contrast, are taxable from the first pound no matter how the agreement labels them. How the total is split between these categories changes your take-home significantly, so we check the tax wording and apportionment as part of every review.
Do I have to pay for advice on my redundancy settlement?
In nearly all cases, no. A settlement agreement is only legally binding once you have received advice from an independent qualified adviser, usually a solicitor, on its terms and effect. Because that advice is a legal requirement, employers almost always agree to contribute to your legal fees through the agreement itself, and that contribution typically covers the cost of a standard review in full. So for most people the advice is free to them. Where an agreement is more complex, or you want us to negotiate rather than simply advise, we tell you clearly at the outset whether the employer contribution covers it and what, if anything, you would pay.
What Our Clients Say
"Sarah supported me through an incredibly difficult and emotional employment dispute with clarity, professionalism, and genuine care. What really stood out was how reassured I felt throughout. Even during moments of uncertainty, I knew I was in safe hands."
Rachel M.
Trustpilot, January 2026
"She was incredibly thorough, taking the time to explain each clause clearly. Despite the level of detail and care, she worked very efficiently and achieved a quick turnaround, getting the documents reviewed and signed off without delay."
James P.
Trustpilot, April 2025
"Clear, calm and quick. Sarah explained every clause in plain English and pushed back on terms that weren't in my favour. The whole process was painless and my employer paid the fees."
Priya K.
Trustpilot, March 2025
"I engaged RGF as representatives for a recent work related issue. Gareth was prompt in his call back and extremely helpful with all the documentation. Very professional while still being friendly. I would recommend RGF to anyone thinking of engaging their services."
Richard P.
Trustpilot, June 2026
"I used Sarah Wilkinson to review what should have been a straightforward settlement agreement with a less than 24 hour turnaround (which was achieved) but turned into 2 weeks of back and forth with my employer and their solicitor. Throughout the whole process, I truly felt like Sarah 'had my back'; she was not only professional but also a decent human being who wouldn't tolerate injustice or unfairness. I would not hesitate to recommend Sarah."
S. L.
Trustpilot, May 2026
"Was dreading getting my redundancy agreement ratified but RGF Lawyers made it a very easy process. Very professional but friendly with it. I would highly recommend RGF Lawyers."
David & Elizabeth J.
Trustpilot, May 2026
"Vandana Tandon was incredibly professional while guiding me through my settlement agreement. At every stage, she ensured I fully understood the process and felt comfortable with each step. Her clear communication and supportive approach made a potentially stressful situation much easier to navigate. I would highly recommend RGF Lawyers."
John
Trustpilot, April 2026
"RGF was extremely helpful with my case. My representative took time to explain all the details in a thorough way, highlighting everything that was particularly relevant. He was also extremely prompt, with everything I needed done in 24 hours."
Jordan M.
Trustpilot, April 2026
"Sarah was very quick, amenable and helpful in reviewing my settlement agreement. Registering and completing ID checks was quick, as was the online process for signing documentation. I would recommend their services."
George W.
Trustpilot, April 2026
No Hidden Costs. No Nasty Surprises.
For Standard Agreements (Free to You)
Your employer pays our fee directly. This is written into most settlement agreements under the 'legal fees' clause. You pay nothing.
£0
to you
For Negotiated Agreements
If we think you can do better, we'll negotiate on your behalf, aiming to increase your payout and remove potentially harmful clauses like non-competes. We'll discuss fees upfront before any work begins. We will always seek a contribution to costs from your employer.
Discussed upfront
no surprises
The Small Print:
It's a statutory requirement that employers contribute to legal fees for advice on settlement terms. If yours doesn't include it, we'll tell you upfront in our initial review (which is free).
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