Many employees search for “average settlement agreement amount UK” to benchmark their offer. In reality, there is no single average figure, but patterns do exist.
What usually makes up a settlement package?
- Contractual sums
- Salary to termination date
- Notice (worked or in lieu)
- Accrued holiday pay
- Any contractual bonus already earned
- Redundancy pay/Statutory redundancy pay if eligible/Sometimes an enhanced redundancy scheme
- Ex‑gratia compensation
The negotiable part that reflects legal risk and your future losses.
Factors that increase potential value
- Long service and high salary
- Evidence of unfair procedure or inadequate consultation
- Potential discrimination or whistleblowing claims
- Difficulty finding equivalent work
- Senior responsibility or reputational issues for the employer
Typical ranges
At lower salary levels and with few risk factors, ex‑gratia sums might be a few weeks to several months’ gross salary. For stronger cases or senior roles, settlements can rise to 6-12 months’ pay or more, depending on risk and negotiation. There are exceptional cases far above this, but they are not typical.
Why individual advice matters
Tribunal awards depend on many variables – including mitigation of loss and statutory caps – so online averages are only rough indicators. A specialist solicitor can:
Estimate likely Tribunal compensation
- Compare it to the offer
- Advise on a realistic negotiation range
- This personalised assessment is far more reliable than any generic “average”.
