Where leverage comes from
An employer pays to settle for three reasons: the risk of losing a claim, the cost of defending one, and the time and disruption of running a fair process. Your leverage is strongest where:
- the employer has no fair reason for dismissal, or has not followed a fair process;
- there is evidence of discrimination, harassment or whistleblowing retaliation, where compensation is uncapped;
- a fair process would take months, and the employer wants you gone sooner;
- the dispute would be embarrassing if it reached a public tribunal;
- you are still employed and performing, so the employer keeps paying you while it waits.
From October 2026 employees have six months to start most claims, which gives employers less to gain from stalling.
Before you respond
- Do not react in the meetingListen, take notes, ask for the offer in writing and say you will take advice.
- Check the basicsIs notice, holiday and any redundancy pay calculated correctly? Use the calculator.
- Value your claimsFollow the steps in how much should I get?
- Decide your prioritiesRank money, reference, leaving date, shares and restrictions. You will not win everything.
- Set your floorThe point below which you would prefer to stay or to claim.
What you can ask for
- More compensation, tied to a specific claim or to the time it will take to find work.
- Notice paid in full, including benefits and pension. See notice pay.
- Bonus, in full or pro rata, and good leaver status for shares. See bonus, shares and pension.
- A later or earlier termination date, to reach a vesting date, a pension milestone or a new tax year.
- An agreed reference and announcement. See references.
- Removal or shortening of restrictions. See restrictive covenants.
- Mutual non-derogatory comments, binding named managers.
- A higher legal fee contribution, and outplacement support.
- A pension contribution in place of taxable cash above £30,000.
- Keeping equipment such as a phone or laptop.
Making the counter-offer
Put it in writing, headed "without prejudice and subject to contract". Keep it short.
- Say you are willing to reach an agreement.
- Set out, in a few paragraphs, the facts that give rise to your claims. Stick to what you can evidence.
- State what you want: a figure and the non-financial terms.
- Explain how the figure is reached.
- Give a reasonable date for a reply.
Avoid threats, personal attacks and anything you would not want read aloud in a tribunal. The "without prejudice" label gives protection, but not for improper behaviour.
Common mistakes
- Accepting in the meeting, or naming a figure before you have taken advice.
- Negotiating only on the headline sum and missing errors in notice or bonus.
- Threatening to go to the press or a regulator unless you are paid. That can be treated as improper and can lose you the protection of without prejudice discussions.
- Removing, copying or forwarding confidential company documents to build your case.
- Letting your work or conduct slip while talks continue.
- Missing the tribunal deadline while waiting for a reply.
If you cannot agree
You can stay in your job and let the employer decide what to do next. If you have been or are about to be dismissed, you can start Acas early conciliation, which is free, pauses the time limit and often produces a deal recorded on a COT3.
Frequently asked questions
Should I negotiate myself or use a solicitor?
Either works. Many people do the first round themselves and bring in a solicitor if it stalls. A solicitor's letter setting out your claims tends to carry more weight and keeps the discussion professional.
How much more can I ask for?
Base your counter-offer on your claims, not on a multiple of the first offer. A reasoned request for a specific figure is far harder to dismiss than a round number.
Can negotiating make my employer withdraw the offer?
It is rare if you are reasonable. Employers expect a counter-offer. Offers are more often withdrawn when an employee goes silent or makes demands with no basis.
How many rounds are normal?
One or two. If you are still apart after three, consider whether Acas early conciliation or a short call between lawyers would close the gap.
Sources
About this guide. This page is general information, not legal advice, and reflects the law and published government plans on the date shown above. Frederick George is a legal referral service, not a law firm. For advice on your own circumstances we will introduce you to an SRA-regulated solicitor.