How your employer/former employer behaves in the way they present the offer and the options you have should not lead you to excessive pressure or inappropriate behaviour. Typically, a settlement agreement covers issues such as the payment of all current and future legal fees and the payment of funds due to the employee. Among these rights, it is likely that, in order to be legally binding, it is necessary to enter into a settlement agreement: some non-contractual termination/indemnification payments in arrangement agreements can be paid up to a threshold of £30,000 exempt (and without deduction of social security contributions). However, the £30,000 exemption does not apply to all payments made in transaction agreements and the tax impact of a payment should be carefully weighed. The exact content of a transaction agreement varies from company to company, but it is customary to find a clause indicating the financial amount paid to the employee, the rights that are signed, the tax effects (if any) and a number of other clauses aimed at protecting the parties. . . .