Nothing automatic. Refusing an offer is not misconduct and it does not end your employment. Your employer improves the offer, leaves it open, or continues with whatever process they had already started. Refusing keeps your claims rather than waiving them.
The fear behind this question
Almost nobody asks this because they want to refuse. They ask because they want to know whether saying no will make things worse.
Being straight about it: it can make the working relationship more difficult, particularly if you stay. But an offer is a negotiation, and a first offer is rarely a final one. Employers who make settlement offers usually want the matter resolved, which is leverage you have whether or not it feels that way.
How long do I have to decide?
The ACAS Code of Practice recommends a minimum of 10 calendar days to consider a written offer and take independent advice. Shorter deadlines are common, but they are not the standard the Code sets, and you can ask for more time.
They gave me two days. Can I ask for more time?
Yes, and you should. Ask in writing, briefly and without apology: you are taking the independent legal advice the agreement requires, and you need a reasonable period to do it. Most employers extend, because the agreement is not binding without that advice anyway.
That last point is worth holding on to. The requirement for you to take advice is not a courtesy. It is what makes the agreement work for your employer. More on the independent advice requirement.
Can they withdraw the offer if I negotiate?
They can, though it is uncommon. A measured counter-proposal with reasons rarely causes an offer to be pulled. The risk rises if negotiations become protracted or the relationship deteriorates further. Going back once, well-prepared, is a different thing from going back four times.
What if I refuse and they start a process anyway?
If a capability, disciplinary or redundancy process follows, it has to be run properly. Refusing a settlement does not remove your employer's obligations, and a process run badly after a refused offer can strengthen rather than weaken your position.
Should I refuse?
That depends on what you want and how strong your position is, which is what advice is for. What we would say is that refusing out of fear, or accepting out of fear, are both bad reasons. The figure on the table and the strength of your claims are different things, and you cannot judge one without the other.
Related questions
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Last reviewed: 25 August 2026.
General information, not advice on your circumstances. If you have been offered a settlement agreement, speak to a solicitor.