A redundancy settlement agreement calculator can be a useful way to gauge your position.
The redundancy process can be tricky to understand at first, and it’s obviously a stressful time for you – both financially and emotionally.
So, to answer the obvious question, we need to start with what is a settlement agreement.
A settlement agreement is where an employee agrees to waive their right to bring legal action against their employer, usually in exchange for a settlement payment.
That figure will most likely be higher than the statutory redundancy pay since that’s the legal minimum that an employer is required to pay when making redundancies.
How Do I Calculate My Redundancy Settlement?
Redundancy settlements will take a lot of factors into account, including:
- How long you’ve been in continuous employment with the company.
- Your age.
- Your weekly pay.
Your weekly pay is based on the average amount you’ve earned over the 12 weeks before you receive your redundancy notice.
It should also include any regular overtime that’s listed in your contract, as well as any bonuses and commissions.
Before you think about your redundancy settlement, it might be worth calculating your statutory redundancy pay to see what the minimum you will get is.
The government’s statutory redundancy pay calculator is the most accurate up-to-date calculator for this.
But when it comes to calculating a settlement agreement, it might be wise to seek legal advice so you’re in the best possible position to agree on a fair settlement.
Online calculators are useful to provide a barometer, but there are other factors at play and every situation is unique.
Your relationship with your employer, the length of time you’ve been employed by them, your salary, and a host of other factors all come into play when it comes to the redundancy settlement you can expect to get.
While it’s unusual for an employee to ask for a settlement agreement, it’s not unheard of – and it may be a good idea if you’re entering a redundancy situation and you want a quick resolution.
The first £30,000 of any settlement agreement or redundancy payment is tax-free, and any settlement agreement can include things such as:
- A termination payment.
- Any remaining salary, notice pay, holiday pay, bonuses, and commission.
- A written agreement for the employee to waive their right to bring legal action at a later date.
- A signature by a solicitor or official representative.
- A ‘non-derogatory clause’ where both the employee and employer agree not to say anything negative about each other.
- A non-disclosure clause.
When it comes to a redundancy situation, employers are legally required to ensure that a fair redundancy process is followed, otherwise, they risk an unfair dismissal claim.
That includes applying fair selection criteria, consulting with employees, explaining the reasons, exploring whether there might be alternative options, and allowing employees to appeal against their redundancy.
The reality is this can be a difficult situation for employers to manage.
It is time-consuming, involves a lot of administration, and it’s not conducive to good morale.
This is why many employers will offer a settlement agreement as an alternative to going through the process of redundancy.
Redundancy Solicitors Near Me
Redundancy is a difficult process.
People who have been part of a business for many years are leaving the company through no choice of their own, and the uncertainty around your future is challenging.
Ensuring that you receive a fair settlement is crucial to the financial future of you and your family – but achieving that is easier said than done.
At Solicitors Near Me, we know how important it is to have expert employment solicitors to help achieve your goals – which is why we connect you with employment solicitors near you for FREE.
There’s no obligation to proceed with the solicitors we connect you with, and there’s absolutely no cost until you decide to proceed with them.
Redundancy Advice Near Me
Whatever your needs, there’s a solicitor near you that help you with redundancy legal advice…