Once you’ve signed a settlement agreement, you may wonder whether it’s still possible to seek further legal advice. Generally, settlement agreements are designed to provide a full and final resolution between you and your employer, meaning you agree not to pursue any further legal claims in exchange for the compensation or terms offered. However, there are some circumstances under which additional legal advice may still be relevant or even necessary.

Here’s a detailed look at when and why you might need further legal advice after signing a settlement agreement, and what limitations may apply.

1. Understanding the Purpose of a Settlement Agreement

A settlement agreement is intended to end any ongoing disputes or claims between you and your employer in exchange for certain agreed-upon terms. It typically includes:

• Waiver of Claims: By signing, you waive the right to bring future claims related to your employment or termination. This waiver often includes claims for unfair dismissal, discrimination, redundancy disputes, and more.
• Financial Compensation: In return, you receive financial compensation, benefits extensions, or other terms agreed upon in the settlement.
• Legal Finality: A key purpose is to achieve legal closure, protecting the employer from future claims and ensuring the employee has received fair compensation.

Because of the agreement’s finality, it’s essential that you fully understand and agree with its terms before signing. Once signed, there is limited room to revisit or dispute the settlement unless specific circumstances arise.

2. Situations Where Further Legal Advice May Be Necessary

While most settlement agreements conclude your relationship with your employer and prevent further legal claims, there are cases where additional legal advice may still be relevant after signing:

a) Employer Breach of Terms

If your employer fails to honor the terms agreed upon in the settlement—for example, if they delay payment, don’t provide an agreed reference, or fail to extend benefits as promised—you may still have legal recourse. Further legal advice can help you:

• Enforce the Agreement: A solicitor can help enforce the agreement by ensuring your employer fulfills their obligations.
• Seek Compensation for Breach: If your employer breaches the agreement, they could be liable for additional compensation or damages.

In this situation, a solicitor can review the breach and advise on the best course of action, including potential remedies or additional claims for non-compliance.

b) Discovering Unresolved Claims

Settlement agreements typically cover claims you know about or reasonably should know about at the time of signing. However, in rare cases, a previously unknown or unrelated claim may arise after signing:

• Undisclosed Health Conditions: If you later discover a health condition directly related to your employment but weren’t aware of it at the time, it may not be covered by the settlement agreement.
• Separate Legal Issues: If an issue arises unrelated to your employment or termination, it may fall outside the waiver of claims, allowing you to seek legal recourse.

In these rare instances, further legal advice is useful to determine if the new issue is covered by the waiver of claims or if it remains actionable.

c) Taxation Issues

Occasionally, settlement payments may have unexpected tax implications, especially if the payment structure is complex. If HMRC raises a tax issue or you receive an unexpected tax bill, you may want to consult a solicitor or tax advisor to understand:

• Whether the Settlement Was Taxed Correctly: Your solicitor can review the agreement and liaise with your employer or HMRC if necessary.
• Options for Tax Disputes: If the tax treatment was unclear or incorrectly calculated, additional legal or financial advice can help address it.

It’s a good idea to clarify the tax implications at the time of signing, but if issues arise later, a solicitor experienced in employment or tax law can provide further guidance.

d) Future Employment and Restrictive Covenants

If your settlement agreement contains restrictive covenants—such as non-compete, non-solicitation, or confidentiality clauses—you may need legal advice to understand your obligations in new employment situations:

• Compliance with Restrictions: A solicitor can clarify how long restrictions apply and what activities might breach them.
• Negotiating Future Employment Terms: If a new employer is concerned about restrictions, legal advice can help negotiate terms or ensure you comply with your settlement.

If you’re concerned about whether specific actions might breach restrictive covenants, seeking legal advice before proceeding is wise.

3. Can You Reopen a Settlement Agreement?

In most cases, a settlement agreement is intended to be a final resolution, and once signed, it’s legally binding. However, there are very limited circumstances under which it may be possible to challenge or revisit an agreement:

• Evidence of Misrepresentation or Duress: If you can demonstrate that you were pressured into signing the agreement, misled about its terms, or coerced, it may be possible to challenge its validity. However, this is rare, and strong evidence is required.
• Mistakes or Ambiguities in the Agreement: If there’s a clear error in the agreement, or if a term is ambiguous and was interpreted differently by each party, you may have grounds to seek clarification or modification. This usually requires legal advice to assess the issue.

Bear in mind that challenging a settlement agreement is difficult, and courts generally uphold these agreements as final. Therefore, it’s best to address any concerns or uncertainties before signing.

4. How to Protect Yourself Before Signing

The best way to minimize the need for further legal advice after signing is to fully address all potential concerns during the negotiation process:

• Seek Independent Legal Advice: A solicitor will review the terms and ensure they meet your needs. This advice is not only required by law but is essential to understand any long-term implications of the agreement.
• Clarify Tax and Payment Terms: Make sure you understand how the settlement will be taxed and when payments will be made to avoid surprises later.
• Discuss Restrictive Covenants: If your agreement includes restrictive clauses, talk to your solicitor about what they mean for your future job opportunities and how they might be enforced.
• Ensure Employer Compliance: Work with your solicitor to confirm that all elements of the agreement—financial, benefits-related, and otherwise—are clear and enforceable.

Taking the time to go through these aspects thoroughly helps avoid complications down the line and ensures the agreement serves your best interests.

5. Final Thoughts

In most cases, once a settlement agreement is signed, it brings legal closure to any employment-related claims you have against your employer. While it’s difficult to amend or challenge a signed agreement, there are situations where further legal advice can be helpful, particularly if your employer breaches the terms or new issues arise.

If you have concerns after signing, a solicitor can help assess your options and provide guidance on whether any further action is possible or necessary. For the best outcome, always approach the settlement process carefully, clarify all terms with your solicitor before signing, and ensure you fully understand the agreement’s implications.