Independent UK Employment Settlement & Compromise Calculator
Calculate whether your employment settlement offer is fair in 60 seconds. Our free UK calculator checks statutory redundancy, notice pay, and tax-free compensation under April 2026 rates (£751 cap). Whether your paperwork says settlement agreement or compromise agreement, find out where you stand for free.
From a quick check to a vetted solicitor on the phone. No cost to you.
Enter your salary, length of service, and current offer. You will get an instant calculation of your statutory redundancy entitlement, notice pay, and whether your offer sits below, within, or above typical UK benchmarks.
Verify how your package is taxed under ITEPA 2003, check your £30,000 tax-free exemption, and inspect clauses such as restrictive covenants, confidentiality terms, and agreed references.
To make your settlement legally binding under s.203(3) ERA 1996, you must receive independent legal advice. In practice, employers standardly provide a capped contribution (typically £350 to £500+ plus VAT) directly to your solicitor upon completion. Connect with an SRA-regulated specialist to review your terms.
Most employees sign the first draft handed to them without realizing the employer contribution to legal fees is below market, restrictive covenants are excessive, and the compensation falls short of statutory tribunal baselines.
Under ERA 1996 s.203, you must receive independent legal advice. We check whether your employer is offering the standard £500 to £1,500 + VAT or trying to underfund your solicitor.
Verify that your £30,000 tax-free termination exemption under ITEPA 2003 s.403 is correctly applied, and that notice pay is separated to prevent unexpected tax bills from HMRC.
Compare your package against Ministry of Justice tribunal tables and ACAS Code 4 guidance, and identify restrictive covenants and confidentiality clauses to discuss with an independent solicitor.
Most employees sign the first number they receive without questioning it. That number is rarely the final one.
Enter your salary, length of service, and your offer to see your estimated net take-home after tax. PILON and the £30,000 exemption are calculated separately.
What is PILON?
PILON stands for Payment in Lieu of Notice. It is the lump sum your employer pays instead of letting you work out your notice period. Unlike redundancy pay, PILON is always taxed as normal income.
Payment in lieu of notice is treated as earnings under ITEPA 2003 s.402D. It is subject to income tax and National Insurance at your normal rate, regardless of what your agreement calls it.
Statutory redundancy pay and other termination payments up to £30,000 are exempt from income tax under ITEPA 2003 s.403. The portion above £30,000 is taxable at your marginal rate.
Most calculators show a gross figure. This one calculates PILON and redundancy pay separately, applies the correct tax treatment to each, and shows your estimated net take-home figure.
Most settlement calculators online are built by law firms trying to capture your case. Ours is independent. Solicitors on our panel pay a small introduction fee per qualified lead. We have no single firm to push you towards, and we curate the panel for quality, not volume.
What employees want to know before clicking “calculate.”
Every settlement agreement is unique. Explore our in-depth guides on negotiation, ACAS codes, and redundancy, or have your draft clauses reviewed by an independent specialist.
For a settlement agreement to be legally binding, you must receive independent legal advice under Section 203(3) ERA 1996. To secure this binding waiver, employers standardly provide a capped fee contribution (typically £350 to £500+ plus VAT) directly to your solicitor upon completion of the agreement. For a standard review within this cap, the employer contribution covers the solicitor's fee, and your solicitor will confirm all terms before starting work.
Yes. Under Section 203 of the Employment Rights Act 1996, a settlement agreement is only legally binding if you have received independent legal advice from a qualified, insured solicitor. You cannot waive your rights without it.
It depends on which part of your payment is being taxed. Statutory redundancy pay and other termination payments up to £30,000 are tax-free under ITEPA 2003 s.403. Payment in lieu of notice (PILON) is always fully taxable as earnings under s.402D, regardless of what it is called in your agreement. The calculator separates these two elements and shows your estimated net take-home figure after tax.
In standard commercial redundancy or capability exits, employers often propose an ex-gratia starting point of 1 to 3 months of gross salary on top of notice pay and accrued holiday. Your total package should also include statutory redundancy pay, capped at £751 per week, with qualifying termination payments up to £30,000 paid tax-free.
No. Neither GOV.UK nor ACAS provides an interactive settlement agreement calculator. The government only provides a basic statutory redundancy calculator. SettlementCheck is an independent settlement calculator applying UK statutory rates and ACAS Code of Practice guidance that estimates your complete package, including non-statutory compensation, notice pay, and tax exemptions under ITEPA 2003.
The calculator gives a general estimate based on UK statutory rates and observed UK commercial negotiation benchmarks. It is not legal advice. Your circumstances may justify substantially more or less, and only a solicitor reviewing your contract and reason for leaving can tell you.
The calculator and solicitor matching service are live and free to use today. When you submit your details and verify via SMS OTP, we introduce your enquiry to an independent SRA-regulated employment solicitor from our panel who acts solely in your best interest.
Many employees do successfully negotiate more once a solicitor reviews their circumstances. A specialist will assess whether factors like length of service, discrimination, whistleblowing, or contract breaches justify a higher offer.
Only with the vetted SRA-regulated solicitor you explicitly opt in to be introduced to. Never with employers, recruiters, or unrelated third parties. You can withdraw consent at any point.
Most settlement calculators are built by law firms. The goal of those calculators is to capture your details so that firm can take on your case. Our calculator is run by an independent platform with no firm to promote. The estimate you get reflects your actual situation, not what a firm wants you to believe.
Updated every April. The calculator always uses the current rates.
| Figure | 2025/26 | 2026/27 |
|---|---|---|
| Weekly pay cap (England, Scotland, Wales) | £719 | £751 |
| Weekly pay cap (Northern Ireland) | £749 | £783 |
| Maximum statutory redundancy pay (GB) | £21,570 | £22,530 |
| Tax-free termination payment limit | £30,000 | £30,000 |
| Maximum qualifying service years | 20 years | 20 years |
| Maximum statutory notice period | 12 weeks | 12 weeks |
Sources: ERA 1996 s.227 (GB cap), ERO(NI) 1996 (NI cap), ITEPA 2003 s.403 (£30,000 threshold). Figures effective 6 April 2026.
Figures reflect the Employment Rights (Increase of Limits) Order 2026 (SI 2026/310) and Employment Rights (Increase of Limits) Order (Northern Ireland) 2026 (SR 2026/57), in force from 6 April 2026. Last reviewed: May 2026.
Get your free estimate in under two minutes and find out where yours stands.