This is the most common question our settlement solicitors get asked by individuals who are offered settlement agreements by their employers.
How much should I get?
The answer to this question is that the individual should receive adequate compensation for the termination of their employment in all of the circumstances of the case.
The amount of compensation payable to individuals will often vary depending largely on their individual circumstances including their salary contractual notice. And the length of service.
In addition, if the employer has a potentially fair reason to dismiss the individual it may be that there is a lower sum of money paid to that individual under the settlement agreement.
Exceeding 2 years of service
However, if the employee has an excessive 2 years of service and the employer has no potentially fair reason to dismiss that empty and it is likely the case that a sizeable settlement payment needs to be made for that individual to encourage them to enter into the settlement agreement.
The amount which will be payable may also be dependent upon the reason for termination. By way of example, a dismissal relating to performance is an extremely long-winded way to dismiss an employee and where allegations of performance are made then payments under settlement agreements may accordingly be increased.
Conversely, redundancy is a quick means to terminate an employee’s employment and as such this may result in lower payments to be made to the individual particularly where there is short service.
With over 10 years of experience in employment law matters, David Philip Harris specialises in providing legal advice on settlement agreements to both employees and employers throughout the UK. David’s opinion and advice are frequently sought after as he contributes often to BBC Radio Berkshire and the People Management Magazine. David Is a long-standing member of The Employment Lawyers Association and The Law Society.