How this calculator works
This estimate is built around the same four factors a specialist employment solicitor uses to value a UK settlement agreement.
1. Statutory and contractual entitlements
Your starting point is what the law guarantees you. Statutory redundancy pay is calculated from age, length of service, and weekly pay (capped at £700/week in 2024/25). On top of that, you are owed your contractual notice period or a payment in lieu of notice (PILON).
2. Uplift factors
Settlement values rise above the statutory floor when there is a stronger underlying claim. Common uplift factors: unfair-dismissal allegations with a clear procedural breach, discrimination, whistleblowing, performance-management disputes that look pretextual, and seniority or restrictive-covenant complications.
3. The £30,000 tax-free allowance
The first £30,000 of a genuine termination payment is normally free of income tax and National Insurance under section 401 of the Income Tax (Earnings and Pensions) Act 2003. Sums above £30,000 are taxed as income. PILON is taxable from the first pound. Getting this allocation right materially affects your take-home.
4. Comparing the offer
The offer your employer puts on the table sits somewhere between your statutory floor (entitlement plus notice) and the realistic ceiling (statutory plus notice plus uplift). The wider the gap, the more there is to negotiate. We tell you honestly when an offer is fair and when it is low.
This calculator gives an indicative range only. It is not legal advice. The actual value of your settlement depends on the specific facts of your case. For a real review of your actual agreement, your employer pays our fee in nearly all cases. Start a free review.
