Adam Frankel
General Counsel · Technology & AI
15+ years as General Counsel to technology, cloud & AI companies
Free settlement agreement pack, employer side
Part ways properly, on paper.
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GitLaw drafts the employer's full set: the protected-conversation script, the without-prejudice offer, the settlement agreement and the agreed reference. UK agreements and US severance. Free to preview.
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The exit, done properly
Four documents between a problem and a clean exit.
A UK settlement agreement only binds if the employee takes independent legal advice on it, that's the law (s.203 ERA 1996), not a sales pitch. GitLaw drafts your side of the process and is upfront about theirs: budget £500–£750 + VAT for their adviser. A preview, not legal advice.
Sample
Conversation script
PROTECTED CONVERSATION: PREPARATION SCRIPT For your conversation with [Employee Name], Senior Designer · prepared 26 October 2026 THE LEGAL FRAME • This is a pre-termination negotiation under s.111A Employment Rights Act 1996: in an ordinary unfair-dismissal claim, the conversation stays off the record • The protection does NOT cover discrimination or whistleblowing claims, and "improper behaviour" (threats, undue pressure) loses it entirely • Acas Code: give at least 10 days to consider any offer; "sign now or be dismissed on the spot" is improper pressure OPENING "Thanks for making time. I want to have an honest conversation about how things are going, and to put an option on the table that you're free to take away and think about." COVER, IN ORDER 1. The concerns, factual, brief, no character verdicts 2. The proposal, an agreed exit with a package, instead of a formal process 3. The mechanics, a written offer will follow; the agreement only binds once they've taken independent legal advice (you contribute to the cost); nothing is decided today CLOSE "Take the time you need. You'll have everything in writing this week."
Sample
Example CompanyUnit 4, 22 Wharf Road, Bristol BS1 4RD
[email protected] · 0117 946 0230
26 October 2026
Private & confidential [Employee Name]
Re: Proposed settlement agreement, without prejudice & subject to contract
Dear [Employee Name], Further to our conversation, this letter sets out our proposal for ending your employment by agreement. It is written without prejudice and as a pre-termination negotiation under section 111A of the Employment Rights Act 1996, and no admission of liability is made. We propose the following package:
| Ex-gratia termination payment (tax-free up to £30,000) | £9,000 |
| Notice pay (paid in lieu, taxed as earnings) | £3,200 |
| Contribution to your independent legal advice (+ VAT) | £750 |
| Total package | £12,950 |
For a settlement agreement to be legally binding, you must take independent legal advice on its terms and effect, the contribution above is for that advice, and the agreement only takes effect once your adviser signs the certificate. An agreed reference is attached as a schedule. Please take at least 14 days to consider this proposal. You are under no obligation to accept it, and you may wish to take advice before responding.
Yours sincerely,Alex HartleyAlex HartleyFounder, Example Company
Sample
Settlement agreement
SETTLEMENT AGREEMENT (DRAFT): prepared 26 October 2026 Between the Company and [Employee Name], Senior Designer 1. TERMINATION Employment ends on the Termination Date. The Company pays salary and accrued holiday to that date, plus notice or a payment in lieu (taxed as earnings). 2. TERMINATION PAYMENT An ex-gratia payment of £9,000 within 14 days of the later of the Termination Date and this agreement taking effect. The first £30,000 of a genuine ex-gratia termination payment is currently tax-free (ITEPA 2003 ss.401–403); notice pay is always taxed. 3. WAIVER OF CLAIMS [Employee Name] waives the statutory and contractual claims itemised in Schedule 1, listed individually, because s.203(3) requires the agreement to relate to particular claims. 4. CONDITIONS FOR VALIDITY (s.203(3) ERA 1996) This agreement is not binding unless: it is in writing; [Employee Name] has received advice from a relevant independent adviser on its terms and effect; the adviser is identified, and insured; and this agreement states that these conditions are satisfied. The adviser's certificate is at Schedule 2. The Company contributes £750 + VAT to the cost of that advice. 5. REFERENCE The agreed reference at Schedule 3 will be given in response to any enquiry. 6. PERMITTED DISCLOSURES Nothing in this agreement prevents protected disclosures, reports to regulators or the police, or any disclosure required by law.
Sample
Example CompanyUnit 4, 22 Wharf Road, Bristol BS1 4RD
[email protected] · 0117 946 0230
26 October 2026
Private & confidential [Employee Name]
Re: Reference: [Employee Name]
To whom it may concern, [Employee Name] was employed by Example Company as Senior Designer from March 2023 until their departure. During their employment, [Employee Name] was responsible for design delivery across a number of client accounts and contributed to several successful projects. [Employee Name] left by mutual agreement. We thank them for their contribution and wish them well in their next role. This reference is given in the form agreed between the parties. Any enquiries may be directed to the undersigned.
Yours faithfully,Alex HartleyAlex HartleyFounder, Example Company
Previewing an exit package for [Employee Name], Senior Designer · drafted 26 October 2026
What a settlement agreement costs, and what it requires
Because the law makes the employee take independent advice, a whole industry serves them. You, the one who must produce the documents and run the process correctly, get static templates and "call us" pages. This page is the employer's side, drafted properly.
£500–£750+ VAT: the typical employer contribution to the employee's independent legal advice
10 daysthe minimum the Acas Code says an employee should get to consider a settlement offer
£30,000of a genuine ex-gratia termination payment is currently tax-free, notice pay never is
ERA 1996 ss.111A & 203(3); Acas Code of Practice on settlement agreements; ITEPA 2003 ss.401–403 (HMRC EIM13760); published adviser-fee ranges (2025)
Your AI Agent for contracts
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- Explains contracts and marks up what to negotiate.
- Learns from your past contracts and follows rules you set.
- Securely stores your contracts and reminds you before renewals.
How it works
1
Describe the situation
Who's leaving, why, and what you want to offer, in plain English. GitLaw asks what matters (US employee over 40? group exit?) before it drafts.
2
Get the full document set
Conversation script, offer letter, agreement and agreed reference, consistent with each other and with the Acas process.
3
Close it properly
Send for signature, factor in their adviser's sign-off, and store the signed agreement with the timeline documented.
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Trained on 5,500+ clauses and specialist areas of law. Built with a standards committee of independent lawyers.
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Steven J. Shanker
Partner and Chair of Corporate and Employment Law
25+ years as a corporate & employment attorney in New York
Trusted by 5,000+ businesses
End it cleanly, for both of you.
Describe the situation and preview the whole employer document set, free.
GitLaw drafts with trusted templates from its library
Browse all templatesFrequently asked questions
A common rule of thumb is 2–3 months' gross salary on top of notice, accrued holiday and any statutory redundancy pay, flexing from around one month (short service, weak claims) to six or more (long service, strong or discrimination-flavoured claims). What you're buying is certainty: price the offer against the cost, management time and risk of running the formal process and defending a claim.
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