Free settlement agreement pack — employer side

Part ways properly — on paper.

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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UK & US (severance) wording
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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.

Previewing an exit package for [Employee Name], Senior Designer · drafted 16 September 2026

Settlement agreement

SETTLEMENT AGREEMENT (DRAFT) — prepared 16 September 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.

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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)

Draft my settlement pack — free

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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Frequently 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.

End it cleanly — for both of you.

Describe the situation and preview the whole employer document set — free.

Free · Employer side · No accountDraft my pack