What factors affect settlement payouts?

October 14, 2021

The level of payment that you can reasonably expect will depend on a range of factors.  The following can all be relevant:

  • Age
  • Length of service
  • Salary
  • Benefits – such as bonuses, share options, car allowance, pension, health insurance etc.
  • Notice period
  • The identity of your employer
  • The facts – such as whether there is a disciplinary or grievance issue, a redundancy, or something else in the background.  The facts are key to your leverage.  If your employer has dismissed you, or could dismiss you fairly there is less incentive upon them to pay you generously, because you are less likely to have viable claims.  On the other hand, if you have been treated badly, and there are circumstances in which you may have claims for unfair dismissal, whistleblowing, discrimination or something else, then you will have greater leverage to negotiate a more generous pay out. We frequently advise on this type of situation and often negotiate on behalf of our clients.
  • How long you envisage it will take you to find a new role.

What is an average settlement agreement payout?

Each case depends on its own facts.  Comparing, or trying to look at averages isn’t very helpful in these circumstances because in each case it will depend on the context and particular leverage of the parties.  There is no one size fits all. Our experience in handling hundreds of settlement agreements means we are well placed to advise you on your specific deal. 

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This website contains a summary of various aspects of employment law. It is not intended to provide legal advice for specific cases. No liability is accepted for reliance on any of the information on this website. If advice is required please contact the firm. Settlement Agreements UK is the trading name of Julian Taylor Solicitors Limited, a company registered in England and Wales with registration number 7171586. Julian Taylor Solicitors Limited is recognised and regulated by the Solicitors Regulation Authority and all of its directors and members are solicitors of England and Wales.

Julian Taylor Solicitors Limited is recognised and regulated by the Solicitors Regulation Authority with registered number 533592 www.sra.org.uk
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