Settlement Agreement Calculator UK
How to Use
- Enter your monthly gross salary and service details.
- Select age bracket and organisation scale.
- Choose applicable situations from the multi-select list (hold Ctrl/Cmd for multiples).
- Add any pending bonus/commission.
- 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
| Factor | Settlement Typical | Tribunal Max |
|---|---|---|
| Basic Award | £5k-£15k | £20k (service/age capped) |
| Loss of Earnings | 3-6 months | 3 months median |
| Discrimination | +£10k avg | £30k+ uncapped |
| Redundancy Solo | Enhanced pay | Statutory 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).