How Much Should I Ask for in a Settlement Agreement?
By Solidaire Solicitors – Experts in Employment Law & Settlement Agreements
Are you wondering how much you should ask for in a settlement agreement? You’re not alone. Every week, thousands of UK employees face this question when leaving a job under agreed terms. The right figure depends on your legal rights, length of service, and the nature of your exit.
At Solidaire Solicitors, we specialise in UK employment settlement agreements—helping you secure the compensation you deserve.
What Is a Settlement Agreement?
A settlement agreement is a legally binding contract between you and your employer. In exchange for a financial payment, you agree not to pursue employment-related claims in a tribunal or court. It often includes clauses on pay, confidentiality, references, and waiver of legal action.
Since you’re giving up significant rights, it’s critical that the amount offered reflects what you’re actually entitled to. Don’t accept an offer without legal advice or a personalised settlement estimate.
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How Much Can You Ask For in a Settlement Agreement?
The amount you can ask for depends on several key factors. Here’s what we consider when calculating a fair employment settlement:
- Strength of Your Legal Claims
Do you have grounds for unfair dismissal, discrimination, redundancy disputes, or breach of contract? Strong legal claims give you greater leverage to ask for a higher payout.
- Notice Period and Contractual Pay
You’re entitled to:
- Full notice pay (or payment in lieu)
- Accrued but unused holiday pay
- Outstanding bonuses or commissions
These are your minimum legal entitlements under UK employment law.
- Tax-Free Compensation
Under UK tax rules, up to £30,000 of settlement compensation can be paid tax-free (if it’s not part of salary, bonuses, or contractual notice). This portion is often the most negotiable—and where we help clients gain the most.
- Seniority and Length of Service
The more senior your role and the longer your service, the more valuable your claim may be. These factors can significantly increase your expected payout.
- Personal Impact & Timing
If your departure involved reputational harm, mental stress, or an abrupt exit, these can also be taken into account when negotiating your final settlement offer.
Typical Settlement Amounts – What to Expect
There’s no legal “standard” for how much you should receive, but in practice, many agreements range from:
- 1 to 3 months’ salary (standard)
- 3 to 6 months’ salary (negotiated exits)
- Up to 12 months or more (strong claims or high-level roles)
For a realistic, personalised estimate, try our online tool below.
🧮 Use Our Free UK Settlement Agreement Calculator
Need a fast, confidential quote? Use our Free Settlement Agreement Calculator to get a tailored compensation estimate.
It’s the easiest way to find out what your settlement could be worth—no strings attached.
Get a Free Settlement Estimate – See What You Could Be Owed
Why Choose Solidaire Solicitors?
We’re not just here to review your agreement—we’re here to maximise it. Our employment law team provides:
- Independent legal advice (usually covered by your employer)
- Settlement amount evaluations based on current UK law
- Skilled negotiation to increase your payout
- Support with non-financial terms (references, confidentiality, etc.)
We’ve helped employees across all sectors—from finance and tech to retail and healthcare—achieve fairer, stronger settlement agreements.
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✅ Get your personalised settlement estimate now
📞 Or contact our employment solicitors for a free, confidential consultation.
EXCELLENT Based on 55 reviews Tracy Breeds2025-07-28 Excellent service, kept me updated step by step either by email or a phone call. Would highly recommend. Aivaras Navardauskas2025-07-28 Bodrul was brilliant throughout my settlement process, professional, thorough, and genuinely supportive. He explained everything clearly, handled all paperwork swiftly, and gave me confidence at every step. Super responsive and easy to talk to, even when things felt a bit overwhelming. Highly recommend if you want someone who actually has your back. Sukhi Bagri2025-07-23 Bodrul from Solidaire Solicitors is one of the very best Solicitors i have worked with through my career, especially his ste by step guidance through helped me achieve excellent outcome with my case. Arnon Jumnongsri2025-07-16 Excellent service! Quick to respond and helped me get a the best settlement agreement. Eva Martina2025-07-09 Professional, efficient and quick to respond, I was very happy with Bodrul's services and would be happy to recommend him to others. Georgi Cook2025-06-26 Bodrul was great! He was efficient, reliable, knowledgeable and very capable. Issues resolved very quickly. Will be using again! tj jones2025-06-18 Due to mutual agreement with myself and my employer, I had to contact a number of solicitors to mediate my final settlement, and Solidaire is the one I decided to use and from start to finish, Bodrul were absolutely fantastic throughout, Bodrul was quick efficient and even got me a boosted settlement so within a few days it was all sorted. Bodrul was excellent and professional very proactive throughout. Definitely recommend Thanks Tristan Mustapha Zamaan2025-06-10 I recently used Solicitor Bodrul for a settlement agreement, and I couldn’t be more impressed with the service I received. He was incredibly professional, thorough, and efficient throughout the entire process. Bodrul explained everything clearly, answered all my questions with patience, and made what could have been a stressful experience feel straightforward and manageable. His attention to detail and commitment to getting the best outcome for me were outstanding. I highly recommend him to anyone needing employment legal advice, better service from start to finish! Saramine Mukute2025-06-04 Bodrul was incredibly helpful, patient, and thorough while advising me on an employment law issue. His attention to detail, calm approach, and strong negotiation skills made a stressful situation much easier to navigate. I felt fully supported and well-represented throughout. Highly recommended! Nour Huda2025-05-21 Such a great experience. Mr. Bodrul's communication was prompt. He made the process so much easier and took the time to walk me through documents and explained them clearly so I'm aware of what I'm consenting to. Highly recommend, very friendly and professional!