If your employer has offered you a compromise agreement (known as a settlement agreement outside Northern Ireland), they are offering to pay you money in return for agreeing not to take them to court or an Employment Tribunal.
You don’t have to accept the initial amount they offer; it’s open to negotiation. So you probably want to know how much you can realistically expect.
The answer depends on a number of factors.
Are you being made redundant?
If you’re being made redundant as part of a group, you’re likely to receive more than the others if you’re on a higher salary, and if you’ve worked there for a longer period of time.
If you were selected for redundancy from a pool, you might have a case if you were chosen unfairly, or if the criteria for selection were discriminatory.
Top tip: Your employer might offer you more if you agree to complete projects you’re working on, to train your successor before you leave. They might also offer more if you agree that you won’t work for a competitor for a set period of time, or that you’ll keep the agreement confidential.
Are you in a dispute with your employer?
The amount you’ll receive will depend on the seriousness of the mistreatment you experienced.
Your case will be stronger when you have supporting evidence to back up your verbal complaint:
- Collect written evidence such as emails and text or WhatsApp messages
- Keep a diary of events
- Ask for witnesses
Top tip: Stay professional. As soon as your employer knows you’ve instructed a lawyer to help, they will take you more seriously.
What’s included?
Here are some of the elements that might be included in the amount you receive:
- Outstanding salary
- Expenses owed
- Notice period
- Holiday pay
- Car allowance
- Bonus
- Pension
- Company car
- Health insurance
- Life assurance
Points to note
Legally, any compromise agreement must be in writing, and signed by an independent adviser – we can help with that. We’ll explain the details of the agreement to ensure you understand it. If you deserve more money, we’ll help you negotiate. And don’t worry about our fee – in most cases, your employer will pay.
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