Victories for employers accused of wrongful dismissal
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The first settlement agreement offer from your employer is rarely their best offer. Understanding negotiation leverage and tactics can significantly increase your compensation package.
Understanding Your Leverage
Your negotiating position depends on several factors:
- Strength of potential tribunal claims
- Your length of service
- The circumstances of your departure
- Your employer's desire for certainty
- Evidence of discrimination or breach of contract
Key Areas for Negotiation
1. Financial Compensation
Don't just focus on the headline figure. Consider:
- Payment in lieu of notice (PILON)
- Compensation for loss of statutory rights
- Discretionary bonus payments
- Pension contributions during notice period
- Holiday pay accruals
2. Tax Treatment
The first £30,000 of termination payments is usually tax-free. Ensure your agreement structures payments optimally to minimize tax liability.
3. References
Negotiate the exact wording of your reference. A weak reference can cost you far more than additional settlement money in lost future opportunities.
4. Restrictive Covenants
Post-termination restrictions on working for competitors or soliciting clients can severely limit your career options. These are often negotiable.
"We regularly achieve 30-50% improvements on initial settlement offers through strategic negotiation. Never accept the first offer without professional review."
Contact our team for a free initial assessment of your settlement offer.
