Use our award winning calculator to estimate the value of your potential settlement agreement (previously called a compromise agreement):
In our settlement agreement calculator (aka compromise agreement calculator) we assume that you have been employed for over 2 years, that you have either been dismissed or forced to resign, and that you have the evidence to prove that the dismissal (or constructive dismissal if you resigned) was legally unfair.
Case feature breakdown
Salary is very relevant, because in employment tribunal awards in this country, in constructive / unfair dismissal cases, a tribunal would only tend to award a successful claimant with an amount of money equivalent to that which they lost whilst in between jobs.
When calculating your settlement agreement ex gratia payment amount, we start with a baseline level of 2 months’ gross pay. Admittedly this is slightly finger in the air, but it does seem to be an average starting point in reality in our experience, to be adjusted up or down for other factors as set out below.
We’re adding your notice period onto our settlement agreement calculation, on the basis that we would often be able to get you a deal whereby you receive payment in lieu of notice, ie you still get paid for your notice period but you don’t have to work it. Ideal!
It’s harder to find a job if you’re nearing retirement age, therefore you would get more compensation if successful at an Employment Tribunal. Your award might well be less, though, if you are older than retirement age, because your retirement was going to take place anyway. So depending on your age we adjust the amount calculated accordingly.
Bigger companies tend to want to settle cases more, but they have more red tape and approvals to get. Small companies sometimes can’t afford to settle a case. The middle ground here is the sweet spot for your settlement agreement calculation.
A slight increase for number of years worked, simply because you’ve probably forged more loyalty from your employer work, and your level of knowledge about the company might be greater too, so things like handovers are more valuable. Also you might know where all the so-called bodies are buried! So the longer your service, the greater your settlement agreement calculator result.
We’ve drawn a distinction here between situations where its just you going and where others are going too. If its just you then it is still a bit more difficult to argue against than other cases because they will have put together a ‘business case’ for getting rid of you, even if we all know that its all completely made up.
If others are going too then its often difficult to negotiate a high amount because lets say the whole department is being outsourced abroad, well, how do you prove that its a witch hunt against you personally?
A slight increase here in your settlement agreement calculator amount, because it shows that you are serious and have something to argue about but at the same time its not a hugely difficult obstacle for them to overcome.
Only a slight increase here to your settlement / compromise agreement calculator amount, because discrimination is very difficult to prove in practice.
Already left or in a new job
If you’ve previously left your job, then this is a real setback to the likelihood of you getting a good settlement agreement. Your employers have no incentive now to pay you to leave. If you’ve got a new job lined up, then this makes the chance of a settlement even less likely, because you can’t even claim that you have been/will be adversely affected by loss of earnings.
If you’ve issued a Tribunal claim then it does make you look more serious. On the other hand you may have burnt some bridges, including any rapport with HR, and its now gone up to the legal department, and sometimes legal think that they have to win every fight.
A modest increase here in the calculator amount because normally you are able to do your job properly, but then again it is easier for them to make your working life harder, and it can be harder to get another job too.
Tricky one whistleblowing, because sometimes its counter productive. Companies, especially big ones, feel obliged to fully investigate, and of course defend any allegations of unlawful conduct.
They are scared of paying you off in order to hush it up – the so-called gagging clause. Because what if word gets out and you go to the press anyway? Then they’ve made it look worse for themselves by paying you to sign a settlement agreement and keep your mouth shut.
We’ve given a slight increase for whistleblowing anyway because with the right lawyers you can subtly hint at these things, or keep them verbal, and use that to leverage a good deal.
If you’ve been put on a performance improvement plan this can actually be a bit of a godsend. Think about it – they’re going to have to pay your salary for the duration of the plan, so they might as well pay you that now just to get rid of you. Also all the wasted management time and potential legal fees too – why not suggest that they just pay you that now to leave quietly. Don’t forget to get an agreed reference in your settlement agreement too!
A serious decrease for this, as no doubt your employer would try to use this against you (regardless of whether it’s justified or not).
On sick leave
Short term sick leave can help your case as it may be that their behaviour is making you ill and frankly also you may well still be getting paid to be off sick. Long term sick leave makes your case harder to fight because firstly you’re probably not being paid anyway (so why should they start paying you now) and secondly they could argue that you are not capable of working.
Commission / Bonus
We’ve taken into account some of your bonus, but not a huge amount, because often these things are discretionary and difficult to argue that you were contractually entitled to it.
Commission is a different matter though – we’ve allocated a bigger chunk of your commission because normally commission is contractual. Lets face it they will probably find some way to dispute the figure, right? So we haven’t given you 100% of this in your calculated settlement agreement amount.
In our experience, many public sector organisations have a policy that they won’t negotiate with employees for settlement or compromise agreements. This means that you have to sue them in the Employment Tribunal, which makes life more difficult.