Settlement agreements tend to use used where the employer is expected to pay more than the statutory minimum entitlement. The benefits of paying more is that it provides a certainty (for both parties) that no further dispute or court action (employment tribunal) will take place.
But how can you tell if the deal you are been offered is fair?
A good settlement will provide you the equivalent of between four to six months equivalent salary, which is good for employees, because in todays market it could take a little time to get new employment that offers the same benefits as your current role.
But as they are no fixed rules for what you should be paid then figures differ a great deal. Expect more money if your notice period is longer (3 months plus), and expect less if you have a shorter notice period.
It’s important that you work through your own personal finance and presume that it will take you three months to get a new role, this will give you a ballpark figure of what you would like from the settlement.
An employment solicitor will look at your contract and your settlement agreement ad advice you on whether negotiation will help you or not. They will also be able to advice as to whether the compensation offered is fair.
When it comes to the negotiation an employer can always flatly refuse to pay more, but if you don’t ask you won’t get.
We also suggest that you personally don’t negotiate but get your employment solicitor to do it for you, it’s their area of expertise and it’s part of the service that your employer is paying for.