Settlement agreement negotiation process: a practical UK overview
How settlement negotiations often work: reviewing the draft, making counter-offers, and signing only when terms match what you agreed.
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Opening position
Employers often send a draft agreement and a financial proposal. Your first step is to understand every clause—not only the headline figure. Check notice, PILON, holiday, bonuses, shares, benefits, and any restrictions.
Making a counter-offer
Counter-offers should be reasoned: refer to contractual rights, length of service, risk to the employer if claims exist, and market practice where relevant. Your adviser can help frame requests for an improved payment, better wording on references, or mutual non-disparagement.
Signing and dating
Only sign when the document matches what you agreed. Confirm payment dates, tax indemnities if any, and that advice has been given. If you need time, see how long you might have to decide.
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