UK Settlement Agreement Calculator

Settlement Agreement Calculator UK

How to Use

  1. Enter your monthly gross salary and service details.
  2. Select age bracket and organisation scale.
  3. Choose applicable situations from the multi-select list (hold Ctrl/Cmd for multiples).
  4. Add any pending bonus/commission.
  5. Click Calculate for instant breakdown.

Calculation Basis

Starts with 2 months’ gross pay baseline, adds full notice pay. Adjusts via multipliers: service (+2% per year over 2), age (+15% near retirement, -10% over), org size (+/-10% bands), situations (redundancy-single +15%, grievance +8%, discrimination +10%, disciplinary -30%, etc.). Bonus at 70% recovery rate. Reflects typical UK patterns where tribunals cap basic awards but settlements average higher via negotiation.

Common Questions

  • Why baseline 2 months? Matches average negotiated exits before tribunal risks.
  • Public sector low? Many follow strict no-negotiation policies.
  • Tribunal claim boost small? Signals seriousness but burns bridges.
  • Group redundancy zero? Hard to prove individual unfairness.
  • Disabled adjustment? Accounts for job market challenges (+12%).

Settlements vs Tribunal Awards

FactorSettlement TypicalTribunal Max
Basic Award£5k-£15k£20k (service/age capped)
Loss of Earnings3-6 months3 months median
Discrimination+£10k avg£30k+ uncapped
Redundancy SoloEnhanced payStatutory only

Frequent Mistakes

  • Overvaluing bonuses: Often discretionary, recover 50-70% max.
  • Ignoring sector: Public bodies rarely pay ex gratia.
  • Missing notice: Always claim PILON for full period.
  • Post-exit claims: Leverage drops sharply without leverage.
  • Whistleblowing hype: Probes kill quick payouts.

References

  • Employment Rights Act 1996, s.203 (settlement bars).
  • Equality Act 2010, Ch.3 (discrimination remedies).
  • ACAS Code of Practice on Disciplinary and Grievance Procedures, 2015.
  • Employment Tribunal Statistics (UK Gov, annual).
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