Settlement Agreement Calculator
Settlement Agreement Calculator
If you’ve been offered a settlement agreement you might be wondering how much compensation you are entitled to. Unfortunately, despite what you might read or have been told, there is no hard and fast rule about how much compensation your employer should offer you. There are just too many variables to consider and each individual case is different.
However, a good starting point would be to consider: –
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Contractual benefits
You should receive all contractual benefits to the termination date. This will include: –
- Salary
- accrued holiday pay
- pension
- additional benefits, such as private health insurance
- Notice pay or payment in lieu of notice (PILON).
NB: These benefits are taxable and subject to national insurance deductions.
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Compensation
Your employer will usually offer you a termination payment as compensation for loss of employment. This payment will be paid free of tax up to £30,000.00 and can include a statutory redundancy payment (SRP). If you are being made redundant you can check that the SRP is correct by logging onto the Government’s website.
https://www.gov.uk/calculate-your-redundancy-pay
Sometimes, depending on the terms of your contact of employment or the circumstances of your case an employer will offer an enhanced termination payment.
If you are entitled to a bonus or commission, then you should check with your employer whether this is going to be included in the settlement. Other benefits, such as whether your employer is intending to compensate you for the loss of share options, should also be considered. Will you be classed as a ‘good leaver’?
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Other matters
Sometimes employers will pay for outplacement support services to help with your next career move. This can be particularly useful if you have worked for your current employer for a number of years and perhaps haven’t had cause to apply for jobs or attend interviews for a long time and therefore feel that you are ‘out of practice.’
A good Reference may be important to you. If you are leaving your employer on good terms it may be that a well written Reference will help you find another job more quickly.
Will you be expected to work your notice period, or can they offer you garden leave?
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And finally
Your employer will usually have a figure in mind that they are prepared to offer you. It may be generous and/or you may be happy with the figure, in which case your settlement agreement can be concluded fairly quickly.
However, should you feel that the amount offered is insufficient then we would be happy to discuss with you how we can negotiate with your employer on your behalf.
If you have been offered a settlement agreement call Diane Massey for free no-obligation discussion on 01925 937070.
You can email Diane Massey at Dianemassey@dsmlegal.co.uk and request a call back at a time convenient to you
- We can deal with your settlement agreement quickly and will invoice your employer direct.
- If it is too far for you to travel to our offices, we can offer settlement agreement advice by telephone and/or email.
- Evening and weekend telephone consultations are also available.
