SettlementCheck for Employers & HR Directors
Model collective redundancy severance budgets, generate statutory Section 111A protected conversation packs, and dispatch employee independent legal advice to our vetted SRA solicitor panel with guaranteed turnaround times.
Workforce Exit Budget Parameters
Adjust variables to calculate statutory redundancy, ex-gratia packages, and tax liabilities.
Statutory redundancy weekly pay cap: £751/week (SI 2026/310).
Statutory cap is 20 continuous years.
Employment Rights Act 1996 s.162 statutory multipliers.
UK standard is £500 + VAT for Section 203 advice.
Estimated all-inclusive commercial liability across 5 exiting employees, including statutory severance, tax liabilities, and legal sign-off.
Individual Consultation Process (Under 20 Staff)
For fewer than 20 redundancies, individual consultations apply (typically 1 to 2 weeks). No Form HR1 submission is required, though fair selection criteria and consultation meetings are strictly required under ERA 1996 s.98.
Frequently Asked Questions for HR Leaders
Can an employer propose a settlement agreement without triggering an unfair dismissal claim?
Yes. Under Section 111A of the Employment Rights Act 1996, employers can initiate confidential pre-termination discussions without an existing dispute. Provided there is no "improper behaviour" (such as ultimatums or unworkable deadlines under ACAS Code 4), these discussions are inadmissible in ordinary unfair dismissal tribunal proceedings.
Why is an employer required to pay for the employee’s independent solicitor?
Under Section 203(3) of the Employment Rights Act 1996, an employee cannot legally waive statutory employment tribunal claims unless they receive advice from a qualified, insured independent adviser (an SRA-regulated solicitor). To make the waiver legally binding, employers cover this fee as standard practice, typically contributing £350 to £750 + VAT.
What are the statutory collective redundancy thresholds under TULRCA 1992?
Under Section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992, employers proposing 20 to 99 redundancies at one establishment must consult employee representatives for at least 30 days and file Form HR1. For 100 or more redundancies, the minimum consultation period is 45 days. Failure to comply exposes the employer to protective awards of up to 90 days gross pay per employee.
What employer National Insurance applies to settlement termination payments?
Under the Autumn Budget rules effective April 2026, employer Class 1A National Insurance Contributions are charged at 15.0% on ex-gratia termination payments that exceed the £30,000 Section 403 ITEPA exemption. Notice pay (PILON) is treated as general earnings under s.402D and is subject to standard Class 1 secondary NICs.
How does SettlementCheck streamline the Section 203 sign-off process for employers?
Rather than coordinating with dozens of disparate law firms, SettlementCheck enables employers to dispatch standard Section 203 review instructions directly to our nationwide network of verified SRA-regulated employment solicitors. Employees receive independent advice within 48 hours, and employers benefit from fixed-fee billing and unified compliance tracking.
Need to discuss custom enterprise requirements or multi-site redundancy programs?
Contact our Corporate Partnerships Team →