If you have been made redundant, or know you will be made redundant, your employer might ask you to sign a Settlement Agreement. A Settlement Agreement is a legally binding agreement following the termination of your employment. It usually means your employers will pay you something in return for which you warrant not to pursue any claim you may have to an employment tribunal.
It’s tempting to sign these and ‘take the money and run’ but it might not be in your interests to do so, especially if your employer is offering you less than you are really entitled to.
Once you’ve signed a settlement agreement, there is no going back, which is why the law insists that you take independent legal advice on the terms and effects of the agreement. It is usually the employer who pays an agreed amount for your legal fees.