After your employment contract has been terminated by your employer, calculate the value of what you are owed in wages and holiday pay, plus review the settlement agreement figure you have been offered. The aim is to achieve the maximum value in a settlement figure as part of your severance package, and you can negotiate terms with your employer, often using a solicitor to help negotiate the final figure on your behalf. The settlement figure can be discussed and negotiated, even if you have already been made redundant and no longer work there (on gardening leave), or you are at home using your holiday leave entitlement, still attending work, or working from home. In certain circumstances there can be a period of consultation following notice where negotiation is allowed and expected.
Read your employment contract and your redundancy/termination letter and then ask yourself – does your settlement figure look reasonable? Remember, once you have signed your settlement agreement the terms are binding, so review it carefully.
Use our date limitation calculator (to determine eligibility) and helpful flowchart (10 STEPS to determine your estimated exit package with your employer):
If you have worked there for less than 2 years, it is possible your settlement agreement payment value will be less than if you had worked there for many years.
Under employment law, you generally cannot claim compensation for unfair dismissal or demand a huge redundancy payment when you leave if you have less than 2 years’ service (although there are exceptions to this and certain unfair dismissals can be brought when deemed ‘automatically unfair’ in the Employment Rights Act 1996, like redundancy during pregnancy).
You can try to negotiate a better deal, but an employer has no obligation to offer you anything more than the terms set out in your employment contract. Read your contract and look at the terms.
In a settlement agreement an employer may try and add words into the signed agreement which will restrict your actions or limit damage to the employer’s business, these are called restrictive covenants. Examples might include restricting you from:
“I recently took the difficult decision to take legal proceedings against my former workplace. Joao was factual and professional from day one. We talked through the case and the pros and cons of pursuing legal action. He did this in a very neutral way and I genuinely felt he had my best interests at heart. After following the process I am very satisfied with my settlement and the excellent support I received every step of the way. Joao, and everyone I had contact with, made this process as stress free as possible and their communication was excellent. I would not hesitate to recommend them and I already have! If you’re looking for a supportive, professional and transparent legal firm then Lawson West should definitely be top of the list. Many thanks to the whole team.”
What to do next
If your employment contract has been terminated, speak to Lawson West’s settlement agreement specialists. We advise on hundreds of UK settlement agreements every year and you can Contact Us free of charge to discuss your employment situation and the scope for negotiation with your employer. We advise clients every day from all over the UK and we are Top Tier listed for employment expertise in The Legal 500 in East Midlands, so you’re in safe hands. Contact Us
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Visit our How to Calculate Your Settlement Agreement Flowchart
Our Specialist Settlement Agreement Solicitors are available to provide the appropriate advice and guidance in relation to any aspect of settlement agreements or employment law.
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