Last reviewed: October 2026
Been handed a settlement agreement by your York employer? Get it checked before you sign.
Your employer has asked you to take legal advice for a reason. Under employment law, the agreement only waives your statutory employment claims if you have received advice by a relevant independent adviser. That advice is also your chance to find out whether the offer is fair, what you are giving up, and whether the wording could still be negotiated.
Employers usually contribute towards your legal fees as a standard term of the agreement. Where they do, our fee is capped at that contribution, and we invoice your employer directly.
Call today on 0800 861 1883 or request a call back. Advice is given by phone or video across York and North Yorkshire, and same-day appointments are usually available.
What is a settlement agreement?
A settlement agreement is a legally binding contract that sets out the terms on which an employer and employee resolve a dispute, usually when the employment is ending. Every agreement is different, but most include clauses covering:
- the claims being settled, which are the claims you agree not to bring against your employer;
- the payments you will receive, and how each one will be taxed;
- confidentiality, which usually means keeping the terms of the agreement private, often alongside a separate clause that stops you making negative comments about your employer;
- an agreed reference, so you know in advance what your employer will say to future employers.
Settlement agreements and York’s employment picture
York’s largest employers fall into a few broad groups, from rail (with LNER’s registered office at West Offices on Station Rise, Northern is based at George Stephenson House on Toft Green, and Network Rail has offices in the city) to insurance and financial services (Aviva has an office at Wellington Row, the registered office of Aviva Life & Pensions UK Limited), and manufacturing and housebuilding – for example, Nestlé’s Haxby Road site combines its York confectionery factory with its global Product Technology Centre for confectionery, and Persimmon has its head office at Fulford. Major employers in York also include the University of York, York St John University, York and Scarborough Teaching Hospitals NHS Foundation Trust and City of York Council.
Public sector exits often run through a set scheme, such as voluntary severance or an NHS mutually agreed resignation scheme. Whatever sector you work in, and whether that’s in York, or across Yorkshire, including Leeds and Harrogate, we offer independent, expert guidance for employees. Fast and completely free. Call us on 0800 861 1883.
What makes a settlement agreement legally binding
Section 203(3) of the Employment Rights Act 1996 lists six conditions. Your waiver of statutory claims only takes effect if all six are met:
- The agreement is in writing.
- It relates to the particular proceedings. A catch-all waiver of “all claims” is not enough. In Hinton v University of East London [2005] EWCA Civ 532, Smith LJ said at paragraph 33 that each claim should be identified “either by a generic description such as ‘unfair dismissal’ or by reference to the section of the statute giving rise to the claim”.
- You have been advised by a relevant independent adviser on its terms and effect, in particular on your ability to bring a tribunal claim.
- The adviser holds insurance or professional indemnity cover.
- The agreement names the adviser.
- The agreement states that these conditions are satisfied.
The adviser can be a qualified lawyer, a certified trade union official or a certified advice centre worker (section 203(3A)). Our guide explains what a settlement agreement solicitor does.
How long do you have to decide?
Paragraph 12 of the Acas Code of Practice on Settlement Agreements sets a general expectation: unless you and your employer agree otherwise, you should have at least 10 calendar days to read the formal written terms and get advice on them. Those 10 days are guidance, not a legal deadline.
If you decide not to sign, keep the tribunal time limit in mind. Where your job ended, or the problem at work happened, on or after 1 October 2026, most claims must now be started within six months less one day, rather than three months.
Frequently asked questions
Where would a tribunal claim from York be heard?
There is no employment tribunal in York. York County Court and Family Court at Piccadilly House, 55 Piccadilly, York YO1 9WL deals with money claims, housing, bankruptcy, family cases and benefit appeals, but claims against employers are not on its list. A York claim goes to the Leeds Employment Tribunal, West Gate, 6 Grace Street, Leeds LS1 2RP. A claim form (ET1) is usually submitted online and routed to the right regional office; whether a hearing is in person or by video is for the tribunal to decide.
I work in Selby, Scarborough, Malton, Thirsk or Whitby. Does the same apply to me?
Mostly, yes. Under HMCTS guidance T420, the tribunal office is normally decided by the postcode of the place where you worked, and if you worked from home, your home postcode is treated as your workplace. Most YO postcodes, including York, Selby (YO8), Scarborough (YO11 to YO13) and Malton (YO17), are allocated to Leeds. There are two exceptions: Thirsk (YO7) and Whitby (YO21 and YO22) are allocated to the Newcastle Employment Tribunal at Barras Bridge, Newcastle upon Tyne.
Do I need to visit a solicitor’s office in York?
No. The advice can be entirely by phone or video, usually the same day, and the agreement can be signed electronically.
Who pays for settlement agreement advice?
Your employer, in almost every case. If the agreement includes a legal fees contribution, our fee is capped at that figure and billed to your employer under our cost promise.
Is my settlement payment tax free?
Not all of it. A genuine compensation payment for losing your job can usually be paid free of tax up to £30,000, but notice pay, holiday pay and bonuses are taxed normally. Our guide explains whether the payment is tax free.
Settlement agreement fact
Section 203(3) of the Employment Rights Act 1996 makes the waiver of certain employment rights in a settlement agreement conditional on advice from an insured, named, relevant independent adviser.
Related reading
- What is a settlement agreement? (our main guide)
- Redundancy and settlement agreements
- Cooling-off period for a settlement agreement
- Is the payment tax free?
- Acas Code of Practice on Settlement Agreements
Speak to a settlement agreement solicitor
Telephone: 0800 861 1883 or start my settlement
Send us your agreement and we will call you back the same working day wherever possible.
John Hassells, employment solicitor, is Head of Legal at settlementagreement.co.uk. John has over 20 years’ experience advising employees and employers on employment law and is a member of the Employment Lawyers Association. John Hassells is personally regulated by the SRA (SRA No. 168501).
Legal Disclaimer
The contents of this page are intended to be for general information purposes only and do not amount to (nor are they intended to be) legal, tax or financial advice or a complete or authoritative statement of the law nor should they be treated as such. No warranty or promise is given, express or implied, as to accuracy of the information on this page and no liability is accepted for any error or omission. You should instruct a specialist employment solicitor to advise you on your particular situation and not act or rely on the information on this page.
