Negotiating a settlement agreement starts with understanding the offer in front of you. A large headline figure can look reassuring, but it may include salary, notice pay and holiday pay that you would otherwise be entitled to receive.
If you have been offered an exit package, Frederick Solicitors can help you assess what it means for you and whether there is a realistic basis to seek better terms.
Separate existing entitlements from additional compensation
Ask for a written breakdown before deciding whether the offer is attractive. Identify wages already earned, notice pay, holiday pay and any redundancy entitlement. Then identify the additional amount offered in return for settling your claims and accepting the other obligations.
For example, a hypothetical £18,000 package containing £9,000 notice pay and £1,000 holiday pay leaves £8,000 described as additional compensation, assuming there are no other components. That is a different offer from £18,000 compensation paid on top of notice and holiday.
Is there a standard settlement agreement payout?
There is no universal number of months’ salary that makes every offer fair. The right assessment depends on the circumstances: the reason for the proposed exit, any potential claims, the evidence, likely financial loss and what matters to you about moving on.
A tribunal claim is not valued simply by choosing an ambitious figure. Its legal merits, available remedies, evidential weaknesses and litigation risks all matter. Equally, an agreed exit can provide certainty and practical terms that a damages award would not necessarily deliver.
What can you ask your employer to improve?
- The additional compensation and date it will be paid.
- The accuracy of notice, holiday, bonus or commission figures.
- The leaving date and arrangements for working notice.
- The reference and announcement about your departure.
- Restrictions on future work and the legal fee contribution.
Choose your priorities. If you have another role available, permission to start it promptly may be particularly valuable. If your next job depends on a reference, the agreed wording deserves attention before the agreement is signed.
Can your employer refuse a counteroffer?
Yes. Settlement is voluntary and neither side has to accept revised terms. Negotiation does not guarantee an increase, and an offer may have an expiry date. Before making a counteroffer, take advice on how it could affect the existing offer and your position if agreement is not reached.
We can help you present a focused proposal supported by the relevant documents. This keeps the discussion tied to the actual issues rather than unsupported comparisons with someone else’s settlement.
Do negotiations protect your tribunal deadline?
Do not assume that direct negotiations with your employer stop time running. Tribunal time limits require separate attention. Acas early conciliation can affect the deadline, but the rules depend on the claim and dates. Tell your solicitor about any dismissal or treatment you may want to challenge at the outset.
Find out whether your offer can be improved
Before accepting a figure you are unsure about, ask our settlement agreement solicitors to review the offer and explain your options. We provide practical advice on the strengths of your position and can negotiate on your behalf where instructed.
Call 0113 513 2047 or send an enquiry today.
Start your settlement agreement today
Start your settlement agreement today
Related settlement agreement guidance
Read what to check before signing a settlement agreement and our answers to common settlement agreement questions.
We provide advice by phone and online. Find guidance for your area: Leeds · London · Manchester · Sheffield · Birmingham · Bristol · Cambridge · Newcastle · Nottingham · Oxford.