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A settlement figure can look reassuring until you realise that your annual bonus is due shortly after your employment ends. The question, does settlement cover future bonuses, is not answered simply by looking at the headline payment. It depends on your contract, the bonus scheme rules, the reason and date your employment ends, and – crucially – the wording of the settlement agreement.

For some employees, a bonus is a valuable part of total pay. This is particularly true for senior staff, sales roles and those paid under commission, incentive or long-term award arrangements. Before signing, make sure the agreement deals with that value clearly rather than leaving it to assumption.

Does a settlement cover future bonuses?

A settlement agreement may cover future bonuses, but it does not automatically do so. In many cases, the employer will draft the agreement to settle all claims connected with your employment and its termination, including any claim for a bonus, commission or other incentive payment.

That broad waiver does not necessarily mean you are being paid for the bonus. It may mean that, in return for the settlement payment, you agree not to pursue a potential bonus claim later. Whether that is fair depends on the strength and likely value of the entitlement you are giving up.

The safest approach is to separate two questions. First, are you contractually entitled to a bonus or likely to have a claim for one? Second, if the position is uncertain or disputed, has the settlement payment properly reflected the value and risk of that claim?

The agreement should say explicitly whether a bonus is paid in addition to the settlement sum, included within it, or not payable. Ambiguity can be expensive once the agreement has been signed.

Start with the contract and scheme rules

Your employment contract is the starting point, but it may not be the complete answer. Bonus schemes are often governed by separate plan rules, annual letters, commission schedules or policy documents. Ask for the current version if you do not have it.

Contractual bonus rights

A contractual bonus may be payable when specified conditions are met. For example, a contract might provide for a percentage of revenue generated, a fixed payment on achieving a target, or a pro-rated annual bonus. If the conditions have been satisfied, an employer may have limited scope to withhold payment simply because a settlement is being discussed.

Even here, the detail matters. A clause may require you to be employed and not under notice on the payment date. It may permit a pro-rata calculation where you leave part way through the year, or it may make payment conditional on company performance. A term that appears straightforward can change significantly once read alongside the plan rules.

Discretionary bonuses

Many bonuses are described as discretionary. This does not always end the discussion. An employer may retain discretion over whether to make an award and how much to pay, but it must exercise that discretion rationally and in good faith. The employer should not apply the scheme in an arbitrary, capricious or discriminatory way.

That said, challenging a discretionary bonus can be less certain than enforcing a fixed contractual entitlement. A settlement agreement is often used to resolve that uncertainty. The relevant issue becomes whether the proposed sum is a sensible compromise in light of your performance, past awards, business results and the terms of the scheme.

Commission and sales incentives

Commission is frequently treated as a bonus, but its legal position may be different. If commission has been earned under a contractual formula before your termination date, it may be wages due rather than a future discretionary award.

Check when commission is defined as earned. Is it when you secure an order, when the customer signs, when the customer pays, or when goods or services are delivered? Also check whether a clawback provision applies and whether the agreement preserves payment for pipeline sales completed after you leave.

Dates can decide the outcome

Two dates commonly create difficulty: your termination date and the normal bonus payment date. Being asked to leave before a bonus is paid does not by itself decide whether you lose it, but the scheme may contain a valid requirement to remain employed on that date.

You should also consider whether you will work notice, be placed on garden leave or receive payment in lieu of notice. During garden leave, you remain employed, which may help where the scheme requires continued employment. A payment in lieu brings employment to an end sooner, potentially affecting eligibility.

Where an award relates to a completed performance year, it may be reasonable to seek payment in full or on a pro-rata basis even if payment is scheduled after termination. Where it relates mainly to future service, the employer may have a stronger argument that no payment is due. There is no single rule that fits every scheme.

What the settlement agreement should say

A well-drafted agreement should not leave bonus treatment buried in a general waiver clause. Look for a specific provision dealing with each relevant plan, particularly where the amounts are material.

It may state that a defined bonus or commission payment will be made, identify the gross amount or calculation method, and give a payment date. If the figure is not yet known, it should explain how and when it will be calculated. It should also confirm whether normal deductions for tax and National Insurance will be made.

If the employer says no bonus is payable, the agreement should make clear whether the settlement sum includes compensation for the loss or disputed value of that entitlement. This matters because signing usually prevents you from later bringing the employment claims listed in the agreement.

Be particularly careful with wording that says you have received all salary, benefits, bonus, commission and other sums due. Do not confirm that statement if a payment remains outstanding, is disputed, or has not been properly calculated. The same caution applies to clauses confirming that you have no rights under incentive plans, share plans or deferred remuneration arrangements.

Future bonuses, deferred awards and share plans

The word “bonus” can hide several different forms of remuneration. A cash annual bonus is only one example. You may also have deferred bonus awards, retention payments, profit share, carried interest, restricted shares, options or long-term incentive plan awards.

These arrangements often have good leaver and bad leaver provisions. The circumstances of your departure may affect whether awards vest, lapse, accelerate or remain subject to future conditions. A settlement agreement should not casually categorise you as a bad leaver if that would cause substantial loss.

For senior employees, the value of outstanding awards can exceed the proposed termination payment. The plan documents, award notices and board discretion should be reviewed alongside the settlement agreement. It may be appropriate to negotiate a specific treatment of each award rather than accepting a broad statement that all incentives lapse.

How to assess whether the offer is fair

There is no automatic formula for pricing a future or disputed bonus. A practical assessment considers the wording of the scheme, your eligibility on the relevant date, performance already achieved, previous awards, financial results and the cost and uncertainty of pursuing a claim.

Your negotiating position is usually stronger where the entitlement is contractual, targets have been met, the payment relates to work already completed, or colleagues in comparable positions will be paid. It may be weaker where the award is genuinely discretionary, the business has performed poorly, or continued employment on the payment date is an express and enforceable condition.

You do not need to accept the employer’s first characterisation of the payment. If they say it is entirely discretionary, ask what discretion is being relied upon and whether prior practice supports their position. If they say it is included in the settlement figure, ask how that figure was calculated.

Practical steps before you sign

Gather your contract, bonus plan rules, annual award letters, recent payslips and any communications about targets or expected payments. If you have sales-related pay, retain records that show completed deals and the point at which commission is earned.

Then check the termination date, notice arrangements and payment clauses in the proposed agreement. Identify every scheme or award that could be affected. It is better to raise a point before signing than to argue later that a general settlement was not meant to include it.

A valid UK settlement agreement requires you to receive advice from an independent relevant adviser. That advice should cover the effect of the agreement and the claims you are waiving. At Arcos Settlement Agreements, a focused review can also identify whether a bonus, commission or incentive issue needs clearer wording or further negotiation before you decide.

Your next role may be the priority, but a clean transition should not require you to overlook remuneration you have already earned or could reasonably negotiate. Ask for clarity, ensure the agreement reflects the actual deal, and sign only when you understand what you are receiving and what you are giving up.

A settlement agreement can offer welcome certainty at a difficult point in your career, but the value of the deal depends on when you actually receive the money. So, can settlement payments be delayed? They can be, but whether a delay is acceptable, or amounts to a breach of contract, depends mainly on the wording of the agreement and the reason for the delay.

The payment clause should never be treated as an administrative detail. It should state the amount due, the payment date, whether sums will be paid in instalments, and which deductions will be made for tax and National Insurance. Before signing, make sure the timetable works for you, particularly if you are relying on the payment to cover a gap before your next role.

Can settlement payments be delayed after signing?

Once a settlement agreement has been signed by both parties and is legally valid, its terms are contractually binding. If it says the employer will pay within 14 days of the termination date, or within a stated number of days after receiving the signed agreement, that is normally the deadline the employer must meet.

A short delay may happen for practical reasons. Payroll cut-off dates, bank-processing problems or an internal approval issue can all cause a payment to arrive later than expected. That does not automatically mean the employer is refusing to honour the agreement. However, an employer should communicate promptly, explain the position clearly and give a firm revised date.

If the deadline passes without payment or a credible explanation, the position is more serious. The employer may be in breach of the settlement agreement. Your next step will depend on the sums involved, the wording of the agreement and whether the issue can be resolved quickly through a formal request or requires legal action.

Check what triggers the payment date

Settlement agreements use different payment triggers. The distinction matters because a phrase that sounds straightforward can create uncertainty.

For example, payment may be due within a set period following your termination date. Alternatively, it may be due after the employer receives the agreement signed by you and your independent legal adviser. Some agreements make payment conditional on the return of company property, such as a laptop, phone, documents or security pass.

Where a condition applies, it should be precise. An employer should not be able to delay a substantial payment indefinitely by making vague assertions about unreturned property or incomplete paperwork. If property must be returned, ask for a clear list, the return method and confirmation that the employer has received it. Keep evidence of delivery or handover.

It is also worth checking whether the agreement requires you to submit an invoice, provide bank details or sign a separate payment form. These points are usually easy to deal with, but they can cause unnecessary delay if left until after signing.

Payment by instalments

An employer may propose payment in instalments rather than one lump sum. This is not automatically unfair, especially where the instalments are close together and the employer has a sound reason for requesting them. But it changes your risk.

If payment is spread over several months, you may be exposed if the employer’s financial position worsens. The agreement should set out every instalment date and amount, what happens if one instalment is missed, and whether the remaining balance becomes immediately due. You may also want to consider whether a larger first payment or security for the balance is appropriate.

A promise that payment will be made “when funds allow” is not suitable. A settlement agreement should provide certainty, not leave your compensation dependent on an open-ended future decision.

Tax, payroll and the amount you receive

One common source of confusion is that the headline settlement figure is not always the amount that arrives in your bank account. Notice pay, holiday pay, bonus payments, unpaid salary and some other contractual sums are usually subject to PAYE tax and National Insurance deductions. Compensation paid for loss of employment may have different tax treatment, subject to the relevant rules and thresholds.

The agreement should separate each element of the payment where possible. That helps you understand both the timing and the expected net amount. It also reduces the scope for disagreement later about whether an amount was intended to be paid gross or net.

Be careful with tax indemnity clauses. These often require you to reimburse the employer if HMRC later decides more tax is due. Such provisions are common, but they should be proportionate and should not make you responsible for tax arising from the employer’s own actions or reporting errors. Clear independent advice is particularly valuable where the package includes a large ex-gratia payment, shares, bonuses or payments in lieu of notice.

What to do if your settlement payment is late

Start by reviewing the agreement rather than relying on memory or informal conversations. Identify the exact payment clause, the trigger date, any conditions and whether the agreement says interest is payable on late sums.

If payment is overdue, contact the employer or the named HR representative in writing. Keep the message factual: state the agreement date, the clause requiring payment, the amount you believe is due and the date by which it should have been paid. Ask for confirmation that payment has been processed and when it will reach your account.

Do not make threats you do not intend to follow through. A calm written record is usually more effective and gives your adviser a clear audit trail if the matter needs to be escalated. Retain copies of the signed agreement, emails, payslips and bank statements.

If there is no satisfactory response, seek advice promptly. Depending on the circumstances, the available route may include a claim for breach of contract. The correct forum and procedure can vary, particularly where the employment has ended and the agreement includes terms about dispute resolution. Do not assume that an employment tribunal will always be the appropriate place to enforce every unpaid settlement sum.

Can you claim interest for late payment?

Interest is not something to assume. Some settlement agreements contain a clause requiring interest on overdue payments, often calculated at a stated rate. If yours does, it should be enforced according to its wording.

Where there is no express interest clause, interest may still be available as part of a legal claim, but the position depends on the route taken and the court or tribunal’s powers. The statutory late-payment regime used for commercial debts does not necessarily apply to an employee’s settlement payment. This is another reason to have the agreement reviewed before signing, rather than discovering a gap only after a payment problem arises.

Can an employer delay payment because you have not signed?

Yes. Until the agreement is signed and the requirements for a valid settlement agreement are met, the employer is generally not obliged to make the settlement payment. A valid agreement must be in writing, relate to a particular complaint or proceedings, and you must receive advice from an independent adviser on its terms and effect.

That does not mean you should sign under pressure. An employer may set a proposed deadline for acceptance, but you are entitled to take the time needed to understand the terms and obtain independent legal advice. If the offer is time-sensitive, ask for an extension in writing. A reasonable employer will usually recognise that a legally binding waiver of employment rights deserves careful consideration.

The settlement payment is usually consideration for you agreeing not to bring specified claims. You should therefore be clear about what you are giving up, as well as what and when you will be paid. A strong reference, agreed announcement, confidentiality wording and the removal or amendment of restrictive covenants can all be as important as the cash figure.

Protect the payment terms before you agree

The best time to deal with a possible delay is before you sign. Ask for a definite payment date, not simply an assurance that payroll will deal with it. Check whether the date is linked to termination, signature, return of property or another event. Where payment is in instalments, make sure missed-payment consequences are set out.

If you need the funds by a particular date – for rent, mortgage payments, school fees or a planned move – say so. You do not need to disclose every personal detail, but explaining that timing is material can help support a request for an earlier date or a payment outside the normal payroll cycle.

A fast settlement agreement review can identify unclear payment wording, tax risks and conditions that could be used to create delay. At Arcos Settlement Agreements, the focus is on clear, independent advice so you can decide whether the offer gives you the financial security and certainty you need.

A settlement agreement should allow you to move forward with confidence. If the payment clause is vague, conditional or simply too late for your circumstances, raise it before your signature turns a negotiable point into a binding term.

The letter arrives after weeks of meetings, emails and waiting. It may uphold your grievance, reject it, or reach a conclusion that feels incomplete. Whatever the outcome, knowing how to respond after a grievance can protect your position, preserve your options and help you decide whether the working relationship can continue.

A grievance outcome is not simply an administrative formality. It may affect your role, your wellbeing, your reputation at work and any future legal claim. Resist the urge to send an immediate reply while emotions are high. Read the decision carefully, keep the paperwork, and respond in a measured way that is clear about what you need next.

Start with the grievance outcome itself

Your employer should normally set out its decision in writing. The outcome should explain the issues considered, the main findings, any action the employer intends to take, and your right to appeal. It will not always provide every detail of an internal investigation, particularly where this concerns another employee’s confidential information. However, it should give enough explanation for you to understand why your complaint was upheld, partly upheld or not upheld.

Compare the outcome against the grievance you raised. Did it address each allegation or concern? Did the investigator speak to relevant witnesses, review the documents you supplied, or deal with factual points that were disputed? If the decision accepts that something went wrong, does the proposed action properly address the impact on you?

A partly upheld grievance deserves particular attention. Employers sometimes accept a minor procedural point while rejecting the central concern. That may be a fair conclusion, but it may also indicate that important evidence or allegations have not been properly considered.

Keep copies of your original grievance, meeting notes, emails, supporting evidence and the outcome letter. Make a short chronology while events are fresh. This is useful whether you appeal, return to work, explore a settlement agreement or seek further advice.

How to respond after a grievance decision

Your response will depend on the outcome and what you want to achieve. A successful grievance may still leave practical questions: whether you can work with the people involved, whether adjustments are needed, or whether the employer has restored lost pay, corrected records or dealt with an unfair warning.

If you accept the decision, reply briefly in writing. Confirm that you have received the outcome and identify any agreed next steps, such as a return-to-work plan, mediation, a change in reporting line or a timescale for a payment. This creates a clear record and reduces the risk of later disagreement about what was promised.

If you are dissatisfied, do not simply say that the decision is unfair. Explain the precise basis of your concern. For example, you might say that a key witness was not interviewed, an email was overlooked, the stated policy was applied incorrectly, or the conclusion does not follow from the evidence. A focused response is more likely to receive proper consideration than a long account that repeats every detail of the original complaint.

It is also reasonable to ask practical questions where the outcome is unclear. You may need to know who will implement the recommendations, when this will happen, and how the employer will prevent a repeat of the problem. Keep the tone professional, even if the process has been upsetting. The aim is to protect your position, not to make it easier for an employer to characterise your concerns as unreasonable.

Decide whether to appeal

Most grievance procedures provide a right of appeal and state a deadline, often five or ten working days. Check the written policy and outcome letter rather than assuming you have time. If you need a short extension because you are unwell, away, or waiting for essential information, request it promptly and in writing.

An appeal is usually strongest where there is a clear reason for revisiting the decision. This may include new evidence, a significant factual error, an investigation that was not sufficiently thorough, a failure to consider a material issue, bias or a conflict of interest, or an outcome that is disproportionate to the findings.

You do not need to prove your entire case again in the appeal letter. State that you are appealing, identify the relevant findings, set out the grounds in numbered paragraphs, and say what outcome you seek. That might be a fresh investigation, consideration by a different manager, correction of a personnel record, repayment of money, or a practical arrangement that allows you to remain in work safely and fairly.

An appeal can be worthwhile where you want the employer to put matters right. It may be less attractive where trust has broken down completely and you do not see a realistic route back into the organisation. In that situation, it is still sensible to take advice before deciding not to appeal, particularly if you may later rely on the employer’s handling of the grievance.

Do not lose sight of employment tribunal deadlines

An internal grievance or appeal does not normally stop the time limit for bringing an employment tribunal claim. Many claims have a strict deadline of three months less one day from the relevant act or termination date, although the position can vary by claim. Starting Acas Early Conciliation can pause the clock in certain circumstances, but it should not be left until the last minute.

This matters even if your employer says it is investigating. A lengthy internal process can run beyond a tribunal deadline. If you are considering a claim involving discrimination, whistleblowing, unpaid wages, unfair dismissal or another employment right, obtain advice on the deadline that applies to your circumstances as soon as possible.

There is a balance to strike. You may want to give the employer a fair opportunity to resolve matters internally, but you should not sacrifice a legal right by waiting for a process with no clear end date. A calm, constructive approach and protection of your legal position can sit together.

Consider whether a settlement discussion is appropriate

Sometimes a grievance outcome makes clear that the employment relationship has become difficult to repair. This is particularly common where the grievance concerns a senior manager, a serious breakdown in trust, a proposed redundancy, allegations of discrimination, or a dispute about performance or conduct.

A settlement agreement may then be discussed. This is a legally binding agreement under which an employee usually receives compensation in return for agreeing not to bring specified employment claims. It can also deal with notice pay, accrued holiday, an agreed reference, confidentiality, restrictive covenants, announcement wording and the tax treatment of payments.

A settlement agreement is not automatically the right answer, and it should never be treated as a reason to accept an inadequate grievance process. Equally, a sensible agreement can provide certainty and a dignified exit where continued employment no longer feels realistic. The value of any proposal depends on the strength of potential claims, your notice entitlement, the likely time needed to find another role, and the terms you are being asked to give up.

Do not sign simply because a deadline is presented. For the agreement to be valid, you must receive independent legal advice from a relevant adviser. Employers commonly contribute towards that advice, but the contribution should be sufficient for a proper review of the document and the circumstances in which it is offered.

Keep communications careful and confidential

After a grievance, it can be tempting to discuss the outcome widely with colleagues or post about it online. That can complicate matters, particularly where confidentiality provisions, disciplinary concerns or a settlement discussion are involved. Share information only with people who need to know, and keep copies of all communications outside work systems where appropriate and lawful.

You should also avoid resigning in haste. Resignation can have significant consequences for pay, notice, benefits and potential claims. In some cases, remaining employed while you appeal or negotiate gives you more options. In others, the effect on your health may mean a different approach is needed. The right course depends on the facts, not just the strength of your feelings about the outcome.

Get clear advice before making a final decision

A grievance outcome can feel like a verdict on your experience, but it is not always the final word. An appeal may correct a flawed process. A practical workplace solution may allow you to move forward. Where trust has gone, a carefully negotiated settlement may offer a fairer and more certain outcome.

Before you respond, make sure you understand what the decision means, what deadline applies and what you may be giving up. Clear, independent advice can turn an uncertain moment into a considered next step.

Being off sick can make a proposed exit feel especially unsettling. Settlement agreements during sick leave are not automatically improper, but you should not be expected to make a major legal and financial decision before you are well enough to understand it, obtain independent advice and consider your options.

An employer may raise a settlement agreement while you are absent through illness. Equally, you are free to explore an agreed departure if that is what you want. The key questions are whether the conversation has been handled fairly, whether the proposed terms reflect your circumstances, and whether signing is genuinely in your interests.

Can an employer offer a settlement agreement during sick leave?

Yes. There is no general rule preventing an employer from making an offer while an employee is on sick leave, including long-term sick leave. Employers sometimes do so where there has been a lengthy absence, a workplace dispute, a proposed restructure, or a shared view that a return is unlikely to be workable.

However, sick leave does not remove your employment rights. An employer should not use your absence as an opportunity to pressure you into giving up claims for less than fair value. Nor does a settlement agreement allow an employer to avoid proper consideration of issues such as disability, reasonable adjustments, capability procedures or discrimination.

The circumstances matter. A brief absence with a clear return date is very different from an extended absence involving a serious health condition, ongoing treatment or an uncertain prognosis. If your condition affects your ability to process information, make decisions or engage in negotiations, that should be raised. It may be appropriate to ask for more time, for communication through a representative, or for a meeting to be delayed.

What makes a settlement agreement valid?

A settlement agreement is a legally binding contract under which you usually agree not to bring specified employment claims against your employer in exchange for agreed payments and other terms. It cannot simply be presented as a document to sign on the spot.

For it to be valid, it must be in writing, relate to particular complaints or claims, and identify the independent legal adviser who has advised you. You must receive advice on the agreement and its effect on your ability to pursue those claims. The adviser must hold appropriate professional insurance, and the agreement must meet the relevant statutory conditions.

That independent advice is not a formality. It is your opportunity to understand what you are waiving, what you are receiving in return and what may need changing. Employers commonly contribute towards the cost of this advice, but the contribution should be sufficient for the work required. A more complex agreement, or one requiring negotiation, may justify a higher contribution.

A protected conversation is not a free pass

Some settlement discussions may be described as “without prejudice” or as protected conversations. Those labels can affect whether parts of a discussion are used as evidence in certain tribunal claims, but they do not make unacceptable conduct safe.

For example, discrimination, harassment, improper pressure or misleading statements can still be relevant. Protection is also limited in scope. You should not assume that a label on an email means the employer has acted correctly, or that you have no ability to challenge what has happened.

What to check before signing during sickness absence

The amount offered is often the first point employees notice, but it is only one part of the decision. Your legal adviser should review the full package and the practical consequences of leaving.

Start with the reason for the proposed agreement. Are you being offered a genuine alternative to a formal capability, disciplinary, redundancy or grievance process? Is there a potential claim that has not been reflected in the compensation? If ill health may amount to a disability under the Equality Act 2010, the position may require particularly careful assessment.

You should also check what happens to your contractual and statutory entitlements. This includes notice pay, accrued but untaken holiday, outstanding bonus or commission, pension contributions, private medical cover, permanent health insurance and any income protection benefits. Do not assume that an agreement accurately deals with each item simply because it contains a headline settlement figure.

Tax is another area where wording matters. Salary, holiday pay and payments in lieu of notice are commonly subject to tax and National Insurance deductions. Some qualifying termination payments may be paid tax-free up to £30,000, but the treatment depends on the nature of the payment and the drafting. A clear breakdown helps prevent an unwelcome surprise after your employment ends.

Finally, look beyond payment. An agreed reference can be valuable when you are preparing for a new role. So can a clear announcement, an appropriate leaving date, mutual confidentiality obligations and a sensible approach to restrictive covenants. If the agreement contains a broad non-derogatory statement or confidentiality clause, make sure it does not prevent you from speaking to close family, medical professionals, regulators or prospective employers where appropriate.

Does being unwell affect the time you should be given?

It can. There is no universal statutory deadline for considering a settlement agreement, although Acas guidance generally indicates that employees should be given a reasonable period to consider a written offer. Ten calendar days is often treated as a useful starting point, but it is not a fixed rule and may not be enough in every case.

If you are experiencing stress, depression, anxiety, pain, fatigue or medication side effects, a short deadline may be unreasonable. Ask in writing for the time you need and explain, without disclosing more medical information than you are comfortable sharing, that you need to obtain advice and consider the proposal properly.

A refusal to sign does not automatically mean you will be dismissed. Your employer may continue with a formal process, seek further medical evidence or make a revised offer. That is why it is useful to understand the realistic alternatives before responding. A settlement can provide certainty, but certainty has a value only if the terms are fair.

When a negotiated exit may be the right outcome

For some employees, an agreed departure is a constructive way to draw a difficult period to a close. It can avoid a prolonged process, provide a defined payment date, preserve dignity and secure a reference that might otherwise be uncertain. This may be especially attractive where a return to the same workplace would be harmful or impractical.

For others, signing too soon may mean losing the chance of reasonable adjustments, a phased return, redeployment, sickness benefits or a stronger financial outcome. There is no automatic answer. The right decision depends on your health, the medical evidence, your financial position, the strength of any potential claims and whether you want to remain employed.

Practical steps if an agreement arrives while you are off sick

Keep copies of the agreement, the offer email and any correspondence about deadlines. Do not alter or sign the document before obtaining independent advice. If you need more time or a different way of communicating, ask for it clearly and retain a record of your request.

It is also sensible to gather your contract, recent payslips, bonus documents, sickness absence correspondence, fit notes and any occupational health reports. These documents can help establish what you are entitled to and whether important issues have been missed. You do not need to negotiate alone: a specialist adviser can explain the agreement in plain English, identify the risks and approach the employer about revisions where appropriate.

For employers considering an offer during absence

An offer made during sick leave should be handled with care, patience and respect. A commercially sensible agreement can reduce uncertainty for both sides, but a rushed or insensitive approach can damage the prospect of agreement and increase legal risk.

Employers should consider whether the employee needs adjustments to participate in the process, allow adequate time for independent advice, avoid language that suggests a predetermined dismissal, and ensure the offer reflects the specific circumstances. The agreement should deal accurately with pay, benefits, tax, reference wording, confidentiality and post-termination restrictions. A clear process is more likely to result in a voluntary, durable agreement.

If you receive a settlement agreement while unwell, the most useful next step is not to decide immediately. Give yourself the space to understand the document, your alternatives and what a fair outcome would look like before you commit to closing this chapter.