Settlement Agreement Solicitor Fees
Transparent pricing. Most of the time, your employer pays. Always clear upfront.
The Good News
Most settlement agreements include a clause requiring your employer to pay your legal fees. This is standard practice. It recognises that you need proper legal advice on an agreement your employer has offered to you. In most cases, you won't be paying out of your own pocket.
This page deals with the money: what the work costs, who pays for it, what the employer's contribution clause actually means, and what happens when the contribution falls short. If what you want to know is what the advice itself involves and what you get for the fee, that is set out on the page about settlement agreement advice.
How My Fees Work
My Professional Fee
For most settlement agreements:
Usually capped at your employer's contribution. I provide a fixed fee as soon as I see the draft agreement. For particularly complex or high-value matters (for example, those involving discrimination claims, share options, or extensive negotiation), fees may be higher, and I'll always discuss this with you upfront.
Admin Fee
Administration and processing fee:
Exception:This is waived if you've been a client within the last 12 months.
Same-Day Signing Service
Need your agreement reviewed and signed the same day?
This is on top of the professional fee and admin fee. I prioritise your work and ensure you get a same-day sign-off.
How It Works in Practice
You pay the admin fee(£36 if you're a new client, waived if returning)
I invoice your employer for their contribution towards your legal fees
You only pay if the contribution doesn't cover our minimum fee of £500 + VAT.If there's a shortfall between the employer's contribution and our minimum fee, you pay the difference, not the full fee. We'll tell you this upfront before you commit.
Why "Free" Settlement Agreement Advice Usually Means Employer-Funded
Search for free settlement agreement advice and you will find a great many firms offering it, including mine. It is worth being precise about what the phrase means, because the advice is not free in the sense that nobody pays for it. It is paid for. It is simply not paid for by you.
Under section 203(3) of the Employment Rights Act 1996, a settlement agreement is only valid and binding if you have received independent legal advice from a qualified adviser. You cannot waive your employment rights without it. Note what the statute requires: that you receive the advice. It says nothing about who pays for it.
Employers pay because it is in their interest to pay. They are buying certainty. An agreement signed without independent advice does not reliably do the job they want it to do, and can be challenged later. So their solicitors draft in a contribution towards your legal fees as a matter of routine. If your offer arrives without one, ask. Most employers agree without argument, because the alternative is an agreement they cannot rely on.
The short version: free advice here means employer-funded advice. Where the contribution covers my fee, the only thing you pay me is the £36 admin fee. Who pays the bill makes no difference to whose side I am on: I act for you, and if the answer is that you should not sign, that is the answer you get.
What the Employer's Contribution Clause Actually Says
In most cases, the settlement agreement letter from your employer will include a clause offering to cover your legal fees. This clause typically says something like: "The company will reimburse you for reasonable legal fees up to £[amount] for obtaining independent legal advice on this agreement." Sometimes the offer letter puts it more simply: "We propose that you obtain independent legal advice at our expense, with a budget of £[amount]."
Two things in that wording matter. The first is the cap: the employer is agreeing to a fixed ceiling, not an open cheque. The second is the scope. A contribution "for obtaining independent legal advice on this agreement" is, on its face, a contribution towards advice rather than towards a negotiation. If you are going to push back on the offer, clarify that at the outset rather than discovering it afterwards.
How it works in practice: wherever the employer will accept it, I invoice them directly and you never see the money at all. Some employers instead operate the clause as a strict reimbursement: you settle my invoice and they pay you back. Either way, where the contribution covers the fee, the fee does not come out of your settlement.
Typical contribution levels
Settlement agreements usually specify a legal fee contribution. Common amounts are:
- £500–£800: basic settlements with straightforward agreements
- £1,000–£2,000: more complex situations or higher settlement amounts
- £3,000+: complex cases, discrimination claims, or large settlements
A £500 allowance is modest but often covers basic review and advice. Higher allowances give space for negotiation support.
What to do:Check what amount your employer has offered, tell me that figure when you get in touch, and I'll confirm whether I can work within it.
Your Employer Offered £500: Is That Enough?
£500 is the most common opening figure, and it is a perfectly sensible one for a great many cases. Whether it is enough for yours depends entirely on how much work your agreement actually needs.
What £500 buys
At current market rates for specialist employment solicitors, £500 translates to approximately:
- 2–3 hours of solicitor time (assuming a £150–£200 per hour rate)
- Basic document review: reading the agreement, identifying obvious issues
- Initial advice: explaining what the clauses mean and what you are waiving
- Financial assessment: is the amount reasonable?
- Certification of advice: the statutory requirement that your solicitor has advised you
Within that scope a good solicitor can give solid, foundational advice. You will understand your agreement, know the main risks, and have a view on whether the offer is fair.
What £500 typically does not cover:
- Detailed negotiation with your employer
- Multiple rounds of back-and-forth discussion
- Complex analysis of discrimination or whistleblowing claims
- Specialist tax advice
- Extensive correspondence or document drafting
- Representing you in formal negotiations
Negotiation is a separate exercise from advice, and it is priced separately. If you expect to push back on the offer, read how that process works on the page about negotiating a settlement agreement before you agree the fee contribution, not after.
When £500 Is Genuinely Enough
Straightforward redundancy
Your role goes through a fair process, the agreement is standard, and the settlement is notice pay plus statutory redundancy. The work is checking the calculation (correct years of service, correct capped weekly pay), checking the notice provisions and confirming there is nothing unusual in the drafting. That fits comfortably within £500. You can sanity check the figure yourself first with the settlement agreement calculator, which gives an indicative number from your service and salary in a couple of minutes.
A capability exit, or a mutual parting
The terms are standard, the payment schedule is clear and there is no live dispute. The work is confirming the amount is not unreasonably low, explaining the waiver of claims, checking the covenants and providing the certification. £500 covers that, as it does any case where the offer is fair and you want a fast review and a straight answer.
When £500 Starts to Look Tight
A complicated employment history
Multiple roles, transfers between entities, restructures, changes to your terms over time. Your entitlements are not obvious, and notice, redundancy and pension all need careful working out. That reconstruction takes time, often three to four hours, which stretches the budget.
Clauses that need proper scrutiny
Restrictive covenants that look excessive, confidentiality beyond the norm, warranties that worry you, unusual tax indemnity wording. Working out whether those terms are enforceable, and what they mean for your next job, goes beyond a basic read-through: it is the clause-by-clause work described on the settlement agreement review page.
Work that goes past a review
- You want to negotiate. Consultations, correspondence and strategy move past three hours quickly.
- There may be claims nobody has mentioned. Assessing a possible discrimination, harassment or constructive dismissal claim needs detailed factual analysis.
- Tax or pension complications. Enhanced redundancy, unusual tax treatment or staged payments take specialist input.
If two or three of those describe your situation, £500 probably is not enough, and the time to say so is before you accept the offer rather than after.
Can the Employer Contribute More?
Yes, and in around 70% of higher value or more complex matters, I can usually negotiate a higher contribution to costs from your employer. This means that even if the initial offer doesn't fully cover my fee, I can often arrange for the employer to pay more towards it as part of the overall negotiation.
I handle this as part of the process. You don't need to ask your employer yourself: I raise it during the negotiation and it's usually agreed without difficulty. If you would rather raise it before you instruct anyone, be specific about why. Something along these lines works:
"Thank you for the settlement offer. I plan to obtain independent legal advice as required. Based on my circumstances (briefly explain), I believe I'll need more than the £500 allocated. Can you increase the legal fee budget to £[amount]?"
Agree what the budget is for as well as how big it is: some employers will cover negotiation discussions with HR out of the same contribution if you ask for that at the same time. Most employers accommodate a reasoned request. A larger contribution is still far cheaper for them than litigation risk, and they would rather you were properly advised than half advised.
About My Minimum Fee
I have a minimum professional fee of £500 plus VAT. This is a floor. I won't charge less than this because it ensures I give your agreement proper attention. Most employers offer to contribute around £500–£1,000 plus VAT, which is why, for most people, the two numbers cancel each other out.
The key point:I only ask you to pay anything additional if the employer's contribution doesn't cover my minimum fee and the fees for your actual case. I discuss this with you upfront, in plain English.
What If the Contribution Doesn't Cover Everything?
If your employer's contribution is less than my fee, or if your case is more complex, I'll tell you this upfront before you commit to anything. No surprises.
You have options:
- 1Ask your employer to increase it. If the agreement is complex or the case is unusual, it's often worth asking for a higher contribution. They may well say yes.
- 2Pay the difference yourself. You can cover the gap from your settlement payment or personal funds.
- 3Proceed with your employer's contribution. If your agreement is straightforward, I work within their offer and keep the scope on the essentials: the key clauses, the main risks and whether the money is fair. Negotiation support and follow-up is what gets trimmed.
Topping up only makes sense where the extra work buys something real: better terms, a better financial package, or a risk identified that you would otherwise have signed up to. Ask me what the additional work would cost and what it is likely to achieve. If the honest answer is that the extra spend will not change the outcome, I will tell you.
Whatever you decide, you'll always know the exact cost upfront. I'm transparent about fees because I know you're already dealing with a difficult situation, and money worries add to the stress.
What If My Employer Won't Pay?
This is uncommon. Most employers recognise that employees deserve proper legal advice and build it into their offer. But it does happen occasionally. If your employer hasn't offered to pay, I can still help you.
The first step is simply to ask. There is no legal obligation on an employer to fund your advice, but there is a strong practical incentive for them to do it, and a short line in reply to the offer letter is usually all it takes. If the answer is still no, you would cover the cost yourself, and you still get the same advice, the same thorough review and the same SRA-regulated service. You're protected either way.
Think about it this way:If you're being offered a substantial settlement, paying for proper legal advice protects that payment. Getting the terms wrong could cost you far more than the legal fee. It's an investment in getting this right.
What's Included in My Fee
Assessment & Review
- ✓Initial consultation about your situation
- ✓Detailed review of your settlement agreement
- ✓Analysis of all clauses, terms, and conditions
- ✓Identification of any risks or concerns
Advice & Legal Work
- ✓Clear advice on your options and position
- ✓Statutory advice required by law
- ✓Professional sign-off and confirmation letter
- ✓Copies of all documentation for your records
Not included in the standard fee
- –Renegotiating terms, which is a separate service
- –Ongoing representation in disputes
- –Court or tribunal proceedings
Follow-up questions about the advice itself are included. If you want a fuller picture of what the review covers clause by clause, that is set out on the review page.
Four Things People Get Wrong About Employer-Paid Advice
"Free advice can't be as good as paid advice"
The quality of advice depends on the solicitor's expertise and the time spent, not on who signs the cheque. A specialist giving focused advice within a fee budget can do excellent work. If anything, a defined budget concentrates the mind and strips out work that was never going to change your decision.
"The employer paid, so the solicitor is on their side"
No. The solicitor advises the employee, serves the employee's interests and owes professional duties to the employee. Who pays does not change that, and it could not sensibly be otherwise: advice that was not independent would not satisfy the statutory requirement, which is the very thing the employer is paying for.
"If I don't use the full allowance, I lose the difference"
The contribution is a cap on fees, not a cash sum owed to you, so an unused balance usually stays with the employer. What matters is whether you got advice you understood and could act on, not whether the invoice reached the ceiling.
"I have to use the solicitor my employer suggests"
You do not. You can instruct any solicitor you choose, and the contribution follows you to whichever adviser you instruct, within the cap.
Questions Worth Asking Before You Instruct Anyone
Most fee disputes in this area come from a scope that was never pinned down. Before you instruct a solicitor, be clear about the budget and ask:
- Does the budget cover initial review and advice only, or negotiation discussions as well?
- How many rounds of review of the redrafted agreement are covered?
- Is the certificate of advice and the signing process included?
- What happens, and what does it cost, if the work goes beyond the budget?
- Will I be told before any additional cost is incurred, rather than after?
A solicitor who tells you they can only do limited work within £500 is being honest, not unhelpful. What you should not accept is thin advice on the basis that it was nominally free: if the budget will not stretch to what your case needs, the answer is to ask the employer for more, not to accept less.
Example Scenarios
Scenario 1: Straightforward Matter
A straightforward agreement where the employer's contribution covers our minimum fee. You only pay the admin fee.
Scenario 2: Complex Matter
A more complex matter costs more. The employer's contribution covers part of it, and we discuss the remainder with you upfront, with no surprises. This is also the scenario where it is worth asking the employer to lift the contribution first.
Scenario 3: Same-Day Signing
If you need same-day turnaround, we charge an additional £500 + VAT surcharge. The employer's contribution covers the base fee, so you pay the surcharge and admin fee.
Next Steps
When you get in touch, have your settlement agreement letter ready. Tell us what fee your employer has offered (if anything), and I'll give you a clear quote that breaks down exactly what you'll pay and what the employer will cover.
If you are still working out whether the money on the table is any good, run your figures through the settlement agreement calculator first, then read about what independent legal advice involves and, if the offer looks light, how a negotiation is actually run.
There's no obligation. I'll just be clear and honest about the numbers, so you can decide whether to go ahead.
Ready to get advice?
Call 0116 366 7900 or email steven@stevenmather.co.uk. I'm usually available within hours.
Last reviewed: 28 July 2026, by Steven Mather, Solicitor (SRA 633024, Nexa Law).
See also: Employment Rights Act 1996, section 203
Written by Steven Mather, Solicitor
Steven is a business law solicitor who has been advising on settlement agreements since 2008. He practises through Nexa Law (SRA regulated) and is a member of the Law Society Council. He believes everyone deserves clear, honest advice when facing a difficult time at work.
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