How to Negotiate a Better Settlement Agreement: Tips for Wigan Employees in 2025

Settlement agreements can feel intimidating, but as a Wigan employee in 2025, you have more leverage than you think. Whether you're facing redundancy in a local warehouse, a dispute in retail, or a mutual exit from a manufacturing role, negotiating a better deal is absolutely possible. This guide from MBH Solicitors gives you practical, Wigan-focused tips to secure fairer terms.

What Is a Settlement Agreement?

A settlement agreement is a legal contract where you and your employer agree to end your employment on specific terms. In exchange for a termination payment, you agree not to pursue claims like unfair dismissal or discrimination at an employment tribunal. These agreements are voluntary, and you must get independent legal advice for them to be valid—your employer typically covers this cost.

In 2025, settlement agreements are increasingly common in Wigan due to economic shifts, hybrid working disputes, and new laws like the Employment Rights Bill affecting NDAs and confidentiality clauses.

Why Negotiate Your Settlement Agreement?

Negotiating isn’t just about more money—it’s about protecting your future in Wigan’s tight-knit job market. A well-negotiated agreement can mean:

• Stronger financial support 
• Better job prospects
• Fewer restrictions on your next role

With UK employment law evolving in 2025, knowing your rights helps you avoid unfair terms.

Top Negotiation Tips for Wigan Employees in 2025

Here’s your step-by-step guide to negotiating a better settlement agreement:

1. Understand Your Entitlements

   Before negotiating, know what you’re already owed:

   • Statutory Redundancy Pay: If redundant, check eligibility (2+ years’ service) and calculate using gov.uk tools.
   • Notice Pay: Ensure you’re paid in full or allowed to work it.
   • Accrued Benefits: Confirm holiday pay, bonuses, or commission owed. 
   • Tax-Free Payments: Up to £30,000 of your termination payment is usually tax-free—verify with an adviser.

   Knowing your baseline gives you power. If the offer skips statutory redundancy, push back.

2. Get Expert Legal Advice Early

   You’re required to get independent legal advice—and your employer pays (usually £350–£500). Use this to your advantage:

   • Choose a Wigan employment solicitor like MBH Solicitors, not just your employer’s suggestion.
   • Ask them to spot hidden clauses or unfair terms (e.g., overly restrictive covenants).
   • Discuss what’s negotiable—they’ll know Wigan industry norms (logistics, retail, manufacturing).


3. Negotiate the Financial Package

   The first offer—it’s a starting point. Try these:

   • Ask for More Money: Benchmark ex-gratia payments against service length.
   • Include Bonuses or Benefits: Near bonus season (e.g., March 2025)? Negotiate pro-rated amounts. 
   • Accrued Benefits: Confirm holiday pay, bonuses, or commission owed. 
   • Request Outplacement Support: Ask for career coaching or CV help—vital in Wigan’s competitive job market. adviser.


4. Check Restrictive Covenants

   These clauses can limit your next job by blocking competitors or client contact. In 2025, courts are stricter on unreasonable terms:

   • Negotiate to narrow scope (e.g., reduce 12 months to 6 months).
   • Ensure they’re specific to your role and local area—a UK-wide ban likely won’t hold.
   • In Wigan’s close-knit industries (logistics, manufacturing), this is critical.


5. Secure a Good Reference

   A strong reference is gold in Wigan, where employers know each other. Ask for:

   • An agreed reference in writing, included in the agreement.
   • Neutral or positive language—avoid vague or negative wording.
   • Confirmation that verbal references match the written one.


6. Understand NDA and Confidentiality Changes

   Do the clauses stop you from reporting harassment or discrimination? Check that:

   • NDAs don’t overreach—you can still talk to family, advisers, or authorities.
   • Confidentiality terms are clear and don’t block whistleblowing.


7. Take Your Time

   ACAS recommends at least 10 days to consider the offer. Don’t rush:

   • If your employer pressures you, note it—but you may want a quick resolution too.
   • Use the time to consult MBH Solicitors and weigh options.
   • Document all communications.


8. Consider Non-Financial Benefits

   Think beyond cash:

   • Extended Benefits: Continued health cover or gym membership for 3–6 months.
   • Training Support: Funding for courses to boost employability.
   • Flexible Exit: If leaving over hybrid working, negotiate a phased handover.

Common Pitfalls to Avoid

• Overlooking Tax: Payments over £30,000 may be taxable—clarify early.
• Ignoring Restrictive Covenants: They can block your career for months.
• Signing Too Quickly: Pressure leads to regret.
• Not Checking Exclusions: Ensure pension or injury claims aren’t waived.

Final Thoughts

Negotiating a settlement agreement in 2025 is about knowing your value and using expert support. Whether you're in Wigan’s warehouses, retail parks, or factories, don’t settle for less than you deserve.

Call MBH Solicitors today on 01942 206060 or book a free consultation online. We’ll review your agreement, negotiate on your behalf, and secure the best possible outcome.

Your stronger settlement starts here.

Contact MBH Solicitors in Wigan now:

📩 mbh@wigansolicitors.com
📞 01942 206060