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AI prompts for employment lawyers

Settlement agreements, advice letters, tax treatment — employment work is detail-heavy and client-sensitive. AI helps, provided the detail is checked.

By Steven Mather, solicitor · Reviewed for accuracy against the SRA framework and Ayinde v Haringey [2025] EWHC 1383 (Admin)
In short

Employment work has a particular shape: a lot of it is advising an individual, often distressed, on a document with real consequences. That makes two things matter at once — accuracy on the law, and clarity for the client. AI can help with both, if you keep the verification where it belongs.

Settlement agreement review

A good AI-assisted review of a settlement agreement checks the things that recur every time: whether the statutory requirements for a valid agreement under section 203 of the Employment Rights Act 1996 are met; the tax treatment of each payment element; the scope of claims being settled and, importantly, what is excluded; and the post-termination restrictions and whether they look proportionate. The model can produce this structure quickly — but the statutory and tax points are exactly where you verify rather than trust.

The client letter

This is where AI genuinely shines for employment work: turning the agreement into a plain-English letter that a worried client actually understands, explaining what they're signing and what it means for them. The translation is the easy win; the legal substance underneath it is what you check.

The Lawyer's Prompt — book + 15 Claude skills

Everything in this guide, built into tools you install once. Solicitor-trained skills that draft, review and verify to your house style, with the Ayinde discipline built in — and the book that explains the standard behind them.

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Where to be careful

Tax treatment is the classic trap — the £30,000 exemption, the treatment of PILON, the legal-fees contribution. Get the framework from the model, then verify it, and refer the detailed position to the client's accountant where appropriate. And as always, the Ayinde duty applies: any tribunal decision or piece of ACAS guidance the model cites is checked against the source before you rely on it.

The skill for this work

The Lawyer's Prompt includes a Settlement Agreement Reviewer that runs the full check — s.203 validity, tax treatment, scope of waiver, restrictions — and drafts the plain-English advice letter, with the verification flags built in. See also AI and SRA compliance.

Related: commercial and property prompt guides.

Use AI properly. Then get on with the work.

The book to learn it, the skills to do it — drafting and review in your own house style, with nothing going out you haven't checked.

Get The Lawyer's Prompt — £99