Can an employer withdraw a settlement agreement?

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Concerned that your employer is considering withdrawing a favourable settlement agreement before you’ve had a chance to sign on the dotted line? The professional team at Freeman Jones Solicitors explain whether (and if so, when!) employers can withdraw their settlement agreement in more detail below.

Can an employer withdraw a settlement agreement?

So, can a settlement agreement be rescinded, cancelled, or withdrawn by your employer? Put simply, yes.

Regardless of whether your employer has already rescinded a settlement agreement while you’ve been receiving legal advice or you’re concerned that your boss might withdraw an agreement before you’ve had a chance to fully consider your options, they can rescind at any time, even at the very last minute.

While receiving a written settlement agreement from your employer may feel like something that can’t suddenly be withdrawn whenever they want, they are actually well within their rights to rescind the agreement at any time, so long as it hasn’t been signed by both parties.

The settlement agreement is only legally binding once it has been signed by both the employer and the employee. However, it is unlikely that an employer will withdraw the settlement agreement unless the circumstances between themselves and their employee have recently changed.

It’s important to bear in mind, however, that if you’re struggling to come to an agreement or your employer keeps withdrawing settlement agreements, you can take your case to an Employment Tribunal. While this can be a more costly and time-consuming process, it can also encourage your employer to cooperate.

Searching for expert settlement agreement advice?

If you’re searching for more answers relating to questions like ‘can a settlement agreement be withdrawn’, you’ve come to the right place. At Freeman Jones Solicitors, we have both the years of experience and extensive legal knowledge to help employers and employees alike make the best settlement agreement decisions.

Our settlement agreement services can cover everything from explaining complicated legal jargon and carrying out negotiations on your behalf, to ensuring the settlement agreement in front of you meets a long list of legal requirements and is therefore legally binding.

If you’re keen to find out more about our settlement agreement services, please don’t hesitate to pay our professional and knowledgeable team at visit soon, or give us a call on 01244 506 444 to schedule your free, no-obligation, 20-minute consultation today.

To ensure you’re never far from a Freeman Jones Solicitors branch, we’ve also opened offices across the UK. With branches in Chester, Liverpool, Warrington, and Wrexham, we welcome visitors but are also more than happy to meet you at a more convenient location, if desired.

You can also get in touch with our friendly team of solicitors by sending your settlement agreement enquiry via email to, or by using our online contact form.

Once we’ve received your enquiry, you can rest assured that we’ll be in touch soon to learn more about your settlement agreement needs and how our expert legal team can help.

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Author Colin Freeman View Profile
Colin qualified as a solicitor in 1998. He specialises predominantly in family law, litigation / dispute resolution, wills, probate and settlement agreements and has notable cases reported in the Court of Appeal and High Court.
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