One of the most common questions employees ask after receiving a Settlement Agreement is:

“Can I negotiate more money?”

The answer is often yes.

Many people assume that the financial package offered by their employer is fixed and that they must either accept it or reject it.

In reality, Settlement Agreements are frequently the starting point for discussions rather than the final offer.

Whether negotiation is likely to be successful will depend upon your individual circumstances, your legal position and your employer’s reasons for offering the agreement. However, in many cases there is scope to improve the overall package before the agreement is signed.

Is the first offer the best offer?

Not necessarily.

Employers often make an initial offer based upon a number of commercial and legal considerations.

Depending upon the circumstances, they may have flexibility to improve the package in order to reach an agreement.

This does not mean that every Settlement Agreement can be negotiated, but it does mean you should avoid assuming that the first figure is automatically the best available.

Before accepting any offer, it is sensible to understand whether negotiation is likely to produce a better outcome.

What can be negotiated?

Although most people focus on the compensation payment, there are often several aspects of a Settlement Agreement that can be negotiated.

These may include:

• The amount of compensation.
• Notice pay.
• Bonus or commission payments.
• Outstanding holiday pay.
• The date your employment ends.
• Your employment reference.
• Restrictive covenants.
• Confidentiality clauses.
• The wording of certain contractual provisions.
• Your employer’s contribution towards legal fees.

Sometimes relatively small changes to the wording of an agreement can be just as valuable as an increase in the financial settlement.

What affects my negotiating position?

Every case is different.

Factors that may influence the scope for negotiation include:

• The reason your employer is offering the Settlement Agreement.
• The strength of any legal claims you may have.
• Whether proper workplace procedures have been followed.
• Your length of service.
• Your contractual entitlements.
• The financial impact of losing your employment.
• The commercial objectives of your employer.

An experienced Employment Solicitor will assess these factors before advising whether negotiation is likely to be worthwhile.

Should I negotiate myself?

Some employees feel comfortable discussing the offer directly with their employer.

However, there are advantages to obtaining legal advice before entering into negotiations.

Your solicitor can:

• Assess whether the offer appears reasonable.
• Identify issues you may not have considered.
• Explain the strengths and weaknesses of your legal position.
• Advise what improvements may realistically be achieved.
• Negotiate professionally on your behalf where appropriate.

Having a solicitor conduct negotiations can also remove much of the stress and emotion from the process, allowing discussions to remain constructive and focused on achieving the best possible outcome.

Could asking for more money cause the offer to be withdrawn?

This is a concern many employees have.

In practice, employers who offer Settlement Agreements generally expect some level of discussion.

Reasonable negotiations do not automatically result in the offer being withdrawn.

That said, every situation is different.

Your solicitor will advise on the most appropriate negotiation strategy based upon your circumstances and your employer’s objectives.

The aim is to improve the agreement whilst maintaining a constructive dialogue wherever possible.

Negotiation is about more than money

The highest financial settlement is not always the best overall outcome.

Depending upon your circumstances, you may place greater value on:

• A positive employment reference.
• Removing or reducing restrictive covenants.
• An agreed announcement to colleagues or clients.
• A different leaving date.
• Retaining certain employee benefits.
• Confidentiality provisions that work for both parties.

Our role is to understand what matters most to you and negotiate accordingly.

How Pepperells can help

Before recommending any negotiation, we’ll carefully review your Settlement Agreement and explain:

• Whether the financial package appears reasonable.
• Whether you may have stronger legal claims.
• Which terms could potentially be improved.
• The likely benefits and risks of negotiation.
• The best strategy for achieving your objectives.

Where appropriate, we’ll negotiate directly with your employer on your behalf, keeping you informed throughout the process and ensuring that any revised agreement reflects your instructions.

Every negotiation is different

There is no formula that determines whether a Settlement Agreement can be improved.

Some employers have very little flexibility.

Others may be prepared to negotiate several aspects of the agreement.

The key is understanding your legal position before making any decisions.

Obtaining independent legal advice ensures that you know whether the offer represents a fair outcome or whether there may be an opportunity to achieve better terms.

Speak to a Specialist Solicitor

If you’ve received a Settlement Agreement and would like to know whether you could negotiate a better financial package or improved terms, Pepperells can help.

Our specialist Employment Solicitors will review your agreement, advise on your negotiating position and, where appropriate, negotiate with your employer on your behalf.

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