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Settlement agreement negotiation advice

Negotiating a Settlement Agreement

If you are not satisfied with your employer’s offer, you may be able to request changes before signing. We assess the financial and non-financial terms, explain the priorities that may be realistically pursued and, when instructed, negotiate directly with your employer or its solicitor.

Employment professionals discussing settlement agreement negotiations

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Your information will be handled confidentially. Sending this form does not create a solicitor-client relationship.

Assessing the offer

When Should You Consider Negotiating?

Negotiation may be appropriate if the proposed package does not reflect your contractual entitlements, the circumstances surrounding your departure or the employment claims that may be available to you. The suitability of the offer should not be judged by the headline compensation figure alone.

Non-financial terms can also have a lasting effect. The reference, termination date, confidentiality provisions, departure announcement and restrictions applying after your employment ends may all require careful consideration.

  • The compensation appears too low
  • Contractual payments are missing
  • The proposed reference is unsuitable
  • Restrictions on future work are too broad
  • An existing dispute or potential claim has not been addressed
  • The termination date or announcement wording is unsuitable

Before you respond

Assess the Complete Offer Before You Respond

It is important to distinguish between payments you are already contractually entitled to receive and the additional compensation offered in return for settling your legal claims. Salary, notice pay, accrued holiday and other contractual payments should not be treated as part of the additional settlement payment.

Your employer is not required to accept proposed changes. We can assess the offer alongside your contract, salary, length of service and the circumstances leading to the proposed departure. This helps identify realistic priorities and gives you a clearer basis for deciding if negotiation is appropriate.

The negotiation process

How Settlement Agreement Negotiations Work

We begin by reviewing the proposed agreement and discussing the circumstances that led to the offer. This enables us to assess the financial package, identify unsuitable terms and explain which changes may be realistically requested.

If you decide to proceed, we will agree the points to raise before contacting your employer or its solicitor. We will present the proposed changes, consider any response and discuss your options with you before further decisions are made.

  • Review the complete offer
  • Identify negotiation priorities
  • Agree the proposed changes with you
  • Contact your employer when instructed
  • Consider any revised offer
  • Check the amended agreement
Request Negotiation Advice
Modern office building representing workplace negotiations
Employee and employer discussing proposed settlement agreement terms

Assessing your position

What Can Strengthen Your Negotiating Position?

An employer is not required to improve its offer, and no particular outcome can be guaranteed. A stronger negotiation usually relies on identifiable concerns, supporting information and changes that can be clearly explained.

We assess the proposed agreement alongside your employment contract, length of service, salary, benefits and the circumstances that led to the offer. This helps distinguish realistic negotiation points from changes that may be less likely to succeed.

  • Contractual payments have been omitted or miscalculated
  • There may be credible potential employment claims
  • Your employer’s process appears unfair or incomplete
  • Relevant documents support your concerns
  • Your employer wants an agreed and timely departure
  • The requested changes are focused and proportionate
Ask Us to Assess Your Offer

Financial and non-financial terms

What Terms Can Be Negotiated?

A negotiation can cover more than the amount of compensation. Depending on your circumstances, changes may also be requested to contractual payments, your leaving arrangements, the wording of your reference and obligations that continue after your employment ends. Any revised terms will need to be accepted by both you and your employer.

  • Compensation

    An increase may be requested if the proposed compensation does not adequately reflect your circumstances, length of service or potential employment claims.

  • Notice Arrangements

    The agreement can record if notice will be worked, paid in lieu or spent on garden leave, together with the payments and benefits that apply.

  • Bonuses and Commission

    Earned, expected or discretionary bonus and commission payments may need to be clarified and recorded within the final financial package.

  • Holiday and Benefits

    The treatment of unused holiday, medical insurance, pension contributions and other employment benefits can be discussed and documented.

  • Reference Wording

    A reference can be agreed and attached to the settlement agreement so that both parties know what information will be provided.

  • Announcement Wording

    The wording used to explain your departure to colleagues, clients or other parties can be agreed before an announcement is made.

  • Confidentiality

    Confidentiality clauses may be clarified or amended so that you understand what can be discussed and which permitted disclosures apply.

  • Post-Employment Restrictions

    Restrictions affecting future work, clients or competitors may be narrowed, clarified or removed if the proposed wording is unnecessarily broad.

  • Termination Date

    The termination date may be discussed if a different date would better reflect your notice, benefits or arrangements for beginning another role.

Questions about the process

Settlement Agreement Negotiation FAQs

Does Negotiating Put the Offer at Risk?

Requesting changes does not automatically bring the discussion to an end, and employees are permitted to make a counteroffer. However, a settlement agreement is voluntary and an employer does not have to accept the proposed changes. There may also be circumstances in which an offer is changed or withdrawn before a binding agreement is reached. We will explain the possible risks and agree the proposed approach with you before contacting your employer.

How Long Can Negotiations Take?

The timescale depends on the number and complexity of the changes requested, the availability of the parties and how quickly your employer responds. Straightforward amendments may be resolved within a few days, while more detailed negotiations can take longer. We will take account of any proposed termination date or signing deadline and keep you informed as the discussions progress.

Can You Contact My Employer for Me?

Yes. Once we have reviewed the agreement, discussed your circumstances and agreed the points to raise, we can contact your employer or its solicitor on your behalf. We can present the requested changes, consider any counteroffer and review revised wording before you decide if the final terms are acceptable.

What If My Employer Refuses to Improve the Offer?

Your employer is not required to accept the requested changes. If an improved offer cannot be agreed, we will explain the available options and the potential consequences of each one. You can then decide if you want to accept the existing offer, decline it or consider another course of action. Declining an agreement does not automatically mean that an employment claim will succeed.

Can Non-Financial Terms Be Negotiated?

Yes. Negotiations can include an agreed reference, the announcement of your departure, confidentiality wording, the return of company property, your termination date and restrictions affecting future employment. These provisions may be particularly important if they could affect your reputation, professional relationships or ability to begin another role.

Start your negotiation enquiry

Request Negotiation Advice

Tell us about the settlement agreement and the terms that concern you. You can submit the form without uploading the agreement and provide the document later if you decide to proceed.

You can submit the enquiry without uploading the agreement. Accepted file types: PDF, DOC and DOCX.

Your information will be handled confidentially. Sending this form does not create a solicitor-client relationship, and we will not contact your employer unless you instruct us to do so.