If you have been offered a settlement agreement by your employer, one of the first questions you may have is: who pays the solicitor’s fees?
In most cases, the employer will contribute towards the cost of obtaining a settlement agreement lawyer. This is because a settlement agreement is only legally binding if the employee receives advice from an independent solicitor or qualified legal adviser before signing.
Understanding how solicitors’ fees work can help you avoid surprises and ensure you receive the advice you need.
Why Do You Need a Solicitor for a Settlement Agreement?
A settlement agreement is a legally binding contract between an employer and employee. It is typically used to bring employment to an end on agreed terms or to resolve an employment dispute.
In exchange for compensation or other benefits, the employee usually agrees to waive certain legal claims against the employer.
For the agreement to be legally valid, the employee must receive independent legal advice on:
- The terms of the agreement
- The rights they are giving up
- The effect of signing the document
- Any potential employment claims they may have
Without this advice, the settlement agreement will generally not be enforceable.
Does the Employer Usually Pay?
Yes. In most settlement agreement cases, the employer will contribute to the employee’s legal fees.
This contribution is often set out within the agreement itself and is commonly paid directly to the employee’s solicitor upon completion.
Employers typically offer to cover legal fees because they also benefit from the agreement becoming legally binding. Without independent legal advice, the agreement cannot effectively protect the employer from future claims.
How Much Will the Employer Pay?
There is no fixed amount that employers must contribute.
The contribution will depend on factors such as:
- The complexity of the agreement
- Whether negotiations are required
- The seniority of the employee
- The employer’s usual approach
For straightforward settlement agreements, the employer’s contribution is often sufficient to cover the entire cost of legal advice.
However, if extensive negotiations are required or the agreement is particularly complex, additional legal fees may arise. In these situations, it may be possible to negotiate a higher contribution from the employer.
What If the Employer Doesn’t Offer to Pay?
Although it is common practice for employers to contribute towards legal fees, there is no legal requirement for them to do so.
If no contribution has been offered, it may still be possible to request one as part of the negotiation process. Many employers are willing to agree because it helps ensure the agreement can be completed efficiently.
Should You Sign Before Getting Advice?
No.
You should never sign a settlement agreement before obtaining independent legal advice. A solicitor can explain the implications of the agreement, identify any issues that require negotiation, and ensure your interests are properly protected.
A settlement agreement may appear straightforward, but signing it can affect important legal rights and future claims.
Speak to Our Employment Lawyers
If you have been offered a settlement agreement, our experienced settlement agreement lawyers can review the document, explain your rights, and advise whether the proposed terms are fair.
Contact Fitz Solicitors today for clear, practical advice on settlement agreements and employment law matters.