You do not have to accept the first settlement agreement you are offered. In many cases, there is room to negotiate a better package or clearer wording.
Step 1 – Take time and stay calm
Ask for a copy of the draft agreement and any supporting calculations. Request reasonable time to consider the offer; it is common to ask for at least 7–10 days. Avoid signing anything on the spot.
Step 2 – Understand your legal position
Before you negotiate, you need to know your strengths and weaknesses. With your solicitor, consider:
- How long you have worked there and your role
- Whether procedures have been followed fairly
- Any discrimination, whistleblowing or grievance issues
- The financial value of potential claims and your likely losses
This forms the basis for knowing whether the offer is low, fair or generous.
Step 3 – Identify your priorities
Think about what matters most:
- Higher compensation
- Extended benefits or salary for a period
- A strong, agreed reference and neutral explanation for leaving
- Relaxed restrictive covenants
- A later termination date for pension or bonus purposes
Share these priorities with your solicitor so they can focus negotiations where it counts.
Step 4 – Make targeted, realistic requests
Your adviser can approach your employer on a “without prejudice” basis to:
- Challenge any missed entitlements (holiday, notice, bonus)
- Propose an increased ex‑gratia payment with reasons
- Suggest improved wording for references and announcements
- Amend over‑broad restrictions or confidentiality clauses
- Seek extra time to respond
Link requests to specific risks or costs your employer avoids by settling.
Step 5 – Record any changes clearly
Once you reach agreement in principle:
- Ensure all changes appear in the written document
- Check that payment dates, figures and tax treatment match what was agreed
- Confirm that any verbal assurances (for example, future references) appear in the text
- Only sign when you fully understand the final version and are content with the outcome.
