Home Legal Services Employment Settlement Agreements for Employees
Written by:Â Owen John, Employment Law Partner, Darwin Gray | Last updated: 24/10/2026 | Reviewed by: Owen John
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Our settlement agreement calculator gives you a quick, rough estimate of what a settlement might add up to, based on the things that can be worked out with a formula: your statutory redundancy entitlement, your notice pay, and your accrued holiday. Pop in a few details and you’ll get a ballpark in seconds.
Think of it as a way to get oriented, not a quote. It’s genuinely useful for getting a feel for the “known” parts of a settlement, the bits you’re owed anyway. What it can’t do is tell you the single most important number: the compensation on top.
The honest truth about settlement calculators, ours included, is that they can only estimate the mechanical parts. The real value of most settlements sits in the ex gratia compensation, and that depends on things no calculator can judge:
Two people with identical salaries and service can walk away with very different settlements because of these factors. That’s why the calculator gives you a range for compensation, not a single number, and why the next step really matters.
Use the calculator to get your bearings, then let us give you the real picture. When you send us your offer (or your situation, if there’s no offer yet), we’ll assess your actual position, what your claims are realistically worth, where your leverage is, and what a fair settlement looks like for you specifically. In most cases your employer pays for this advice, so it costs you nothing to find out whether you’re being offered enough.
It’s the difference between a rough guess and knowing. And knowing is what lets you decide with confidence, and negotiate from strength. For more on the figures, see how much you should get and settlement agreement tax.
It’s accurate for the mechanical parts, statutory redundancy, notice pay, and holiday, because those follow set formulas. It can’t accurately predict the compensation (ex gratia) element, which is usually the biggest and most variable part, because that depends on the strength of your claims, your employer’s position, and how the negotiation goes. Treat any calculator result as a rough starting point, not a quote, and get a proper assessment before relying on a figure.
Ours estimates the parts that can be calculated: your statutory redundancy entitlement (based on age, service, and capped weekly pay), your notice pay or payment in lieu, and accrued untaken holiday. It also shows an indicative range for compensation and a rough tax split. What it deliberately doesn’t do is pretend to know your exact compensation figure, because that genuinely depends on factors a calculator can’t weigh, like how strong your potential claims are.
Because the most valuable part of most settlements, the compensation for giving up your claims, depends on things only a person can assess: how strong those claims are, whether your employer followed a fair process, how keen they are to settle, and how well it’s negotiated. A discrimination claim, for example, is uncapped and can be worth far more than any formula. That’s why we offer a free review, to turn the estimate into a real, informed figure.
In most cases, yes, to you. Settlement agreements almost always include a clause where your employer pays a contribution towards your independent legal advice, because that advice is a legal requirement for the agreement to be valid. For standard agreements, that contribution usually covers our review. We’ll always be clear about costs upfront, so there are no surprises. It genuinely costs most people nothing to find out whether their offer is fair.
A calculator gives you a ballpark. We’ll give you the real number, and tell you honestly whether your offer is fair or whether you can do better. We’re Darwin Gray, one of Wales’ leading employment law firms, advising on hundreds of settlement agreements a year. In most cases your employer covers the cost. You’ll deal directly with your solicitor, and as the only firm in Wales offering full Welsh language employment advice at every level, we can help in Welsh or English.
Get a free, no obligation chat with our employment team. Call 02920 829 100 or use our contact form.
Settlement agreements for employees
Disclaimer: This calculator and guide give general estimates and information, not legal or tax advice. Figures are indicative only. For a precise assessment, please speak to a qualified employment solicitor.
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