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ONLYWAY.NEWShttps://onlyway.news/en/jobs/settlement-agreement-when-binding-uk-2026/26.10.2026
Jobs & Business

When signing away rights at work actually binds

Giving up employment rights is void as a rule. We explain when a settlement agreement binds and why independent advice is required.

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You cannot be forced to 'sign away' your employment rights — such a waiver is void as a general rule. This is set out in section 203 of the Employment Rights Act 1996.

The general rule

Any term that tries to exclude or limit your statutory rights, or to stop you bringing an employment tribunal claim, is void (s203(1)). A simple 'I give up any claims' note has no effect on its own.

When a waiver does bind: a settlement agreement

The exception is a properly made settlement agreement. It only binds if the conditions are met (s203(3)):

  • the agreement is in writing;
  • it relates to the particular complaint or proceedings;
  • you took advice from an independent adviser (a lawyer, union official and so on) on its terms and effect, including giving up a claim;
  • the adviser has insurance and is named in the agreement;
  • the agreement states that these conditions are satisfied.

Good to know

Employers usually pay for your independent advice. Do not sign under pressure or before advice: the adviser checks the payment, the wording and exactly what you give up. There is another lawful route too — an agreement through an Acas conciliator (a COT3).

What to do

  1. Get independent advice before signing.
  2. Check the text contains all the required conditions and names the adviser.
  3. Keep a signed copy.

Source: section 203 of the Employment Rights Act 1996. Checked 26 October 2026.

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Published 2 min read Editorial desk of the British newspaper ONLYWAY NEWS - LONDON - UK
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