Settlement Agreement Calculator

We have created a settlement agreement calculator that will tell you how much you can expect to be owed if your employer decides to terminate your contract. We offer same-day, remote and in-person services, at no cost to you.

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Settlement or Compromise Agreements

Has your employer discussed ending your employment through redundancy or with a settlement agreement or compromise agreement?

Poole Alcock has expert employment solicitors who can help you with your settlement agreement. Our Employment solicitors specialise in reviewing, preparing and advising on settlement agreements. With a wealth of expertise in dealing with settlement agreements, they can provide you with quality, easy to understand advice. We will advise you on your settlement/compromise agreements, ensuring you understand your rights. We will also negotiate with your employer if we think you are entitled to more. From beginning to end, your compromise agreement will be dealt with by a knowledgeable and supportive solicitor. We appreciate the importance of getting your compromise agreement right. Our solicitors understand the complexities of dealing with compromise or settlement agreements and will provide you with fair advice. Your redundancy agreement will be considered thoroughly. The advice our solicitors will provide you will be reasoned and sensitive to your needs.

Tax Status of Settlement Agreements

The general position for payments provided for under the remit of the Settlement Agreement is as follows:

Contractual Payments should be taxed and subjected to NIC’s in the usual way – that is to say, payments made arising from an obligation to make the payments under the contract of employment. This includes payment relating to; notice pay (or payment in lieu of notice (PILON)), salary, bonus or commission payments and payments relating to benefits in kind.
Termination Payments – this includes non-contractual payments relating to loss of office. For example; ex-gratia payments, compensation for breach of statutory rights and redundancy payments. The first £30,000 of the total termination payment may be exempt from tax and NIC. Any excess above this threshold should be taxed and subjected to NIC’s appropriately.

It is important that the payments arising under the Settlement Agreement are taxed and subject to NIC appropriately. Whilst it is the primary responsibility of the Employer to ensure this, it is common for the Settlement Agreement to provide for a specific tax indemnity to re-allocate this risk to the Employee.

What we will do for you...

Poole Alcock Solicitors have an expert settlement agreement team that will advise you on:

The content of your settlement agreement, making sure you understand the terms and are aware of your rights.

Whether or not they are offering you enough money, and if not then we will negotiate this with your employer.

If you are being treated fairly.