PIP Settlement Agreement Calculator
Placed on a Performance Improvement Plan or offered a protected conversation? Value your exit package based on employer process cost avoidance, statutory notice, and tribunal caps.
PIP Settlement & Exit Valuation Calculator
Calculate the commercial cost for your employer to conclude a Performance Improvement Plan (PIP) versus offering an immediate agreed settlement package under Section 111A.
Employer Financial Balance Sheet: Why Settle Now?
Negotiate Your PIP Settlement with an SRA Specialist
Section 203 Independent Legal Fee Guarantee
For any settlement agreement to be legally binding, you must receive advice from an independent solicitor. Your employer pays for this advice, typically contributing £500 to £1,500 + VAT directly to your solicitor.
Why UK Employers Offer Settlement Agreements During a PIP
A Performance Improvement Plan (PIP) is frequently used by HR departments not to rehabilitate performance, but to build a documentary trail to justify a capability dismissal. However, executing a legally robust capability process under the Acas Code of Practice 1 on Disciplinary and Grievance Procedures takes 60 to 90 days, demands substantial senior management hours, and exposes the employer to costly Employment Tribunal litigation under Section 98 of the Employment Rights Act 1996.
Under Section 111A of the Employment Rights Act 1996, employers can initiate confidential pre-termination negotiations (a "protected conversation") to propose an agreed settlement exit. By calculating what the company saves in salary, management overhead, and tribunal risk, employees gain strong standing to negotiate fair ex-gratia compensation and full legal fee coverage.