How much should I get in my settlement agreement?
Settlement agreements (formerly known as compromise agreements) are fairly common when leaving your employment, but whether you are getting a fair deal or not is a complex question.
So, how much you should get in your settlement agreement exit package?
Is probably the question that we get asked the most here at Monaco.
And the answer that really obviously depends on your case, the strength of your evidence.
Now it's not a tribunal situation it's a negotiation, so why would anyone care about evidence?
I hear you say.
Well if you think about it your employer isn't probably going to give you a good deal
unless they really believe that you've been really badly treated.
And more than half the time they don't really know what's going on.
It might be different rungs of Management, you might be talking to HR,
you might have had a problem with your line manager or you might have had you know something that happened to you
that basically they either didn't know happened or they don't believe it
or they don't really understand the way it's affected you.
So, the first thing to do is look at your evidence.
Now what.... what's...... what's good in terms of evidence?
We've got a whole article about evidence, a whole section about evidence on the site,
so definitely read more about that elsewhere.
But in a nutshell written evidence is your..... probably your of number one best thing
because no one can really say that an email wasn't sent or a whatsapp or a text or something wasn't sent.
And other than that you know keep a diary of events.
And then witnesses very difficult to get.
You might think that your colleagues will be witnesses for you but when.... when it comes to the crunch,
their employees too and they probably don't want to leave their jobs right now
and so they don't really want to get on the wrong side of management.
But if you can get witnesses, great get some witnesses.
Other considerations apart from evidence is the type of case.
So, broadly there's two situations you'll probably find yourself in one is redundancy and one is a dispute.
So, looking at those separately, for redundancy situations these are pretty difficult if lots of people are going.
So, for example if a whole departments going, then you know perhaps they're outsourcing that particular type of work
to a different country, off-shoring it or on-shoring it back to another country
or just closing down the whole location whether it's an office or factory.
You know it's very difficult to..... to argue that you know you should be entitled to a better deal in those situations,
because it's often a very genuine economic need and an employer is.... is perfectly entitled to change up their structure
and make a whole bunch of people redundant.
Now if on the other hand it's just you going, so it's just a one person or a small group of people going
and you have got grounds to say that perhaps it shouldn't be you, it should be someone else
so perhaps that person wasn't considered and put in the "pool with you,"
So, the pool is the the group of people who you're objectively scored against,
or you might have a problem with the objective scoring itself so that you were considered against that person
but um the criteria.... perhaps it's..... the criteria itself was unfair.
You know it might have measured number of sick days but you might be disabled so that might have put you at a disadvantage there for example.
or and it might be that the criteria is okay but the scoring is wrong.
So, for whatever reason you might dispute you know whoever did the scoring perhaps didn't like you
O r there might be a different reason why the scoring is wrong.
You can go into detail and using all these kinds of ways of kind of exploring the process you are able to negotiate yourself a higher amount.
So, that will inform how much you should get.
Uh, looking at the dispute situation you know pretty much anything can happen at work,
that anything that we see in the school yard, on the streets you know that actually everything in the home, everything
this..... the the kind of dynamic it might not be exactly the same thing but there'll be an equivalent action that can happen at work.
So, you know it really just depends what happened to you.
Obviously the more serious the uh.... the incident or the mistreatment that you've received arguably the uh.... the more you should get
and um also the more you're able to prove that thing.
And you know there are other factors as well that really don't relate to the situation at all, okay?
These are what I would think of as external factors they relate to you.
So,your salary, the more you're earning the more you should get and how long you've there
because partly because you know you've probably built up a good rapport with your colleagues and with the people who are making these decisions.
You also have got more value to add in terms of a handover when you're leaving
and um, perhaps you know you've got to train up your successor or finish off a few projects that's always a good... a good.... a good negotiating chip you can use.
And then and other factors that really relate to your determination to kind of go ahead and succeed in this negotiation.
So, they're going to judge you know what..... have you got the bottle to see this through?
And there might be a bit of brinkmanship where you're really having a standoff, a kind of Mexican standoff neither side wants to back down.
So, are you going go to tribunal?
Is a question they're going to be asking themselves.
Now no one wants to go around threatening that, that's not a really good situation to be in at work.
So, we don't.... we don't recommend that you even mention it.
But you can do certain things and to kind of show that you..... you really mean business.
So, when you are writing your letters you do that in a....in a really good style with very professional formatting,
I..... I know formatting sounds a bit petty but it makes a huge difference if you can write a letter well.
You can use some of the templates on our website for that.
Um, and also you know perhaps the fact that you have got lawyers I mean that is a huge signal to be honest.
Um, I'm not just saying that but anyone in HR or on the company side who's going to make the decision about how much
to actually settle with you, the....the settlement amount they're going to look at, has this person got lawyers?
And if they have they're obviously a serious contender um, to take the whole matter further if it can't be settled amicably.
So just having lawyers and then of course the fact that if you do have lawyers they'll also you know help.....
.... help you with the actual case itself and tell you what to say
and that's going to strengthen your case as well.
And there's a huge number of other factors which um, you know you can read more about here
and there's our calculator where we actually kind of give you a rough indication just by you ticking a few boxes
and putting your salary and you notice period in and there's a few notes surrounding that calculator.
So, definitely try out that calculator.
Um and then also feel free to get in touch with us for a free consultation because we will also tell you on the phone,
how much you should get in your case as well and that's just something that we'll do within a
Okay! good luck. Thanks, bye.