If you are not happy with the terms on offer or wish to continue your employment in any event, there is no obligation on you to sign the settlement agreement. You may feel that you have been given an unreasonable ultimatum or are being pressured in to signing the settlement agreement. The way that your employer conducts itself in the way it presents the offer and options available to you, should not result in you being subjected to undue pressure or improper behaviour.
If negotiations are unsuccessful and you do not sign the agreement, you may or may not have grounds to bring a claim against your employer in an Employment Tribunal. It is important to remember that there is a strict time limit of 3 months less one day from the date of termination/last act of discrimination to do this, and any ‘off the record’ discussions regarding the agreement usually cannot be referred to in the legal proceedings.