Why Are Settlement Agreements Often Offered in July?
If you’ve ever been offered a settlement agreement by your employer during the summer, you might have wondered why July seems to be such a popular time.
At Solidaire Solicitors, we regularly advise clients on settlement agreements — and we’ve noticed that July is one of the busiest months for these offers. But why?
In this article, we’ll explain the main reasons settlement agreements are often offered in July and what you should do if you receive one.
What Is a Settlement Agreement?
A settlement agreement is a legally binding contract between you and your employer. In exchange for waiving your right to bring certain legal claims against your employer — such as unfair dismissal or discrimination — you receive a financial settlement or other agreed terms.
Settlement agreements are commonly used in situations like:
- Redundancy
- Performance concerns
- Workplace disputes
- Restructuring or company mergers
It’s essential to get independent legal advice before signing any settlement agreement, and that’s where we can help.
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Why Are Settlement Agreements Offered in July?
- End of the Financial or Academic Year
For many organisations, particularly in education or sectors funded by the government, July marks the end of the financial or academic year. This is when schools, colleges, and other institutions often review staffing needs for the coming year.
Offering settlement agreements at this point allows employers to manage budgets and staffing levels before the new academic or financial year begins in September.
- Preparing for the September Reset
For most businesses, September is the start of a fresh business cycle. New projects, new clients, and new strategies typically kick off after the summer holidays.
By offering settlement agreements in July, employers can:
- Complete notice periods over the quieter summer period
- Make internal changes before business picks up
- Start the autumn with a fresh team in place
- After Mid-Year Reviews
July often follows mid-year appraisals and performance reviews. If issues arise during these reviews, a settlement agreement may be offered as a mutually agreed solution to avoid formal capability or disciplinary procedures.
Settlement agreements provide a way for both sides to move on amicably and with certainty.
- Quiet Summer Period
The summer holiday season usually means a slowdown in activity for many industries. Employers often choose this quieter period to manage departures with minimal disruption to the business.
For employees, this can be a strategic time to take stock, recharge, and begin looking for new opportunities before the busier autumn job market.
- Tax and Budget Planning
For some employers, offering settlement agreements in July helps with budget planning and financial reporting. It allows companies to allocate costs within the current financial period and tie up loose ends before focusing on growth in the second half of the year.
What Should You Do If You’re Offered a Settlement Agreement?
If your employer has offered you a settlement agreement, don’t feel pressured to sign immediately. You are legally required to obtain independent legal advice before the agreement can be binding — and your employer usually contributes towards your legal fees for this purpose.
When reviewing your settlement agreement, we will ensure:
✅ Your compensation is fair
✅ Your notice pay and holiday entitlement are included
✅ Any restrictive covenants are reasonable
✅ You fully understand the legal effect of signing
At Solidaire Solicitors, we’re specialists in employment law and regularly assist employees in negotiating better terms or compensation packages.
Why Choose Solidaire Solicitors?
✔ Specialist employment solicitors with years of experience
✔ Clear, honest advice in plain English
✔ Fast turnarounds — often same-day advice available
✔ Competitive fees — with your employer usually covering the cost
Conclusion: Why July?
To summarise, settlement agreements are commonly offered in July because:
- It marks the end of the financial or academic year
- Employers want to make changes before September
- It follows mid-year reviews
- Summer is quieter, making transitions easier
- It aligns with employers’ financial planning
If you’ve been offered a settlement agreement, don’t sign anything until you’ve spoken to us.
📞 Contact Solidaire Solicitors today for confidential, expert advice.
Let’s make sure you get the outcome you deserve.
EXCELLENT Based on 55 reviews Tracy Breeds2025-07-28 Excellent service, kept me updated step by step either by email or a phone call. Would highly recommend. Aivaras Navardauskas2025-07-28 Bodrul was brilliant throughout my settlement process, professional, thorough, and genuinely supportive. He explained everything clearly, handled all paperwork swiftly, and gave me confidence at every step. Super responsive and easy to talk to, even when things felt a bit overwhelming. Highly recommend if you want someone who actually has your back. Sukhi Bagri2025-07-23 Bodrul from Solidaire Solicitors is one of the very best Solicitors i have worked with through my career, especially his ste by step guidance through helped me achieve excellent outcome with my case. Arnon Jumnongsri2025-07-16 Excellent service! Quick to respond and helped me get a the best settlement agreement. Eva Martina2025-07-09 Professional, efficient and quick to respond, I was very happy with Bodrul's services and would be happy to recommend him to others. Georgi Cook2025-06-26 Bodrul was great! He was efficient, reliable, knowledgeable and very capable. Issues resolved very quickly. Will be using again! tj jones2025-06-18 Due to mutual agreement with myself and my employer, I had to contact a number of solicitors to mediate my final settlement, and Solidaire is the one I decided to use and from start to finish, Bodrul were absolutely fantastic throughout, Bodrul was quick efficient and even got me a boosted settlement so within a few days it was all sorted. Bodrul was excellent and professional very proactive throughout. Definitely recommend Thanks Tristan Mustapha Zamaan2025-06-10 I recently used Solicitor Bodrul for a settlement agreement, and I couldn’t be more impressed with the service I received. He was incredibly professional, thorough, and efficient throughout the entire process. Bodrul explained everything clearly, answered all my questions with patience, and made what could have been a stressful experience feel straightforward and manageable. His attention to detail and commitment to getting the best outcome for me were outstanding. I highly recommend him to anyone needing employment legal advice, better service from start to finish! Saramine Mukute2025-06-04 Bodrul was incredibly helpful, patient, and thorough while advising me on an employment law issue. His attention to detail, calm approach, and strong negotiation skills made a stressful situation much easier to navigate. I felt fully supported and well-represented throughout. Highly recommended! Nour Huda2025-05-21 Such a great experience. Mr. Bodrul's communication was prompt. He made the process so much easier and took the time to walk me through documents and explained them clearly so I'm aware of what I'm consenting to. Highly recommend, very friendly and professional!