Key statistics at a glance
The 2026 Deen & Co Settlement Questions Study found redundancy was the context in 39.3% of 473 UK employment discussions.
27.7% of discussions involved confusion about "without prejudice" or protected conversations, the second most common theme.
27.3% mentioned a performance improvement plan or being managed out.
26.8% mentioned discrimination or whistleblowing.
24.3% described sick leave or mental health difficulties.
14.2% asked what would happen if they refused the offer.
13.5% described a deadline or pressure to sign quickly.
12.3% asked about tax on their settlement payment.
Only 10.4% asked about the wording of their reference.
9.7% asked who pays for the solicitor.
Sickness and settlement agreements
The 2026 Deen & Co Settlement Questions Study found that people on sick leave were nearly twice as likely to be facing a capability process.
- Of 115 discussions describing sick leave or mental health, 53.0% also described a performance or capability process, against 27.3% across all 473.
- 52.2% of the same group mentioned discrimination or whistleblowing, against a 26.8% base rate.
There is no rule requiring you to decide on an offer while you are unwell, and asking for more time is normal.
PIPs and settlement offers
- Performance improvement plans appeared in 27.3% of discussions.
- 22.5% of PIP discussions also described a settlement or exit offer.
- PIP mentions rose to 28.9% in the latest 24 months, from 19.0% before. The earlier sample is small, so treat this as a possible trend.
The most-replied question in the whole dataset was whether it is normal to be put on a PIP and offered a settlement at the same time.
What employees forget to negotiate
- Reference wording came up in 10.4% of discussions.
- New job and garden leave questions in 14.2%.
- Restrictive covenants in 7%.
- Confidentiality and NDAs in just 2.1%.
These terms are often among the easiest to improve, yet most people only negotiate the payment.
Settlement agreement payments: what official research shows
- Acas research on conciliated (COT3) settlements found a median payment of £3,000, with a mean of £6,600 pulled up by a few high-value claims. Source: Acas, Payment of Acas conciliated settlements.
- In the same Acas research, 95% of claimants paid in full received the full amount within 3 months. Source: Acas.
- The first £30,000 of a genuine termination payment is normally tax free.
There is no official UK average settlement agreement figure. Use our settlement calculator for a guide to your own position.
How the data was collected
473 public discussions from r/LegalAdviceUK, r/UKPersonalFinance and r/AskUK, dated 19 June 2017 to 23 August 2026, filtered from 784 using eight search terms. A discussion can carry more than one theme, so figures do not add up to 100%. These are people with problems, so the figures show what people worry about, not how often things happen across UK workplaces. No solicitor assessed any case and none were Deen & Co clients.
Full method, coding rules and limitations
Cite this data
Deen & Co Solicitors (2026). Settlement Agreement Statistics UK 2026: the Deen & Co Settlement Questions Study of 473 employment discussions, 2017 to 2026. Available at: deenandco.co.uk/settlement-agreement-statistics
Free to use with credit to Deen & Co Solicitors and a link to this page.
Journalists and researchers are welcome to use these figures with attribution. For underlying counts, contact us.
Frequently asked questions
What is the most common reason for a settlement agreement?
In the 2026 Deen & Co Settlement Questions Study, redundancy was the most common context, appearing in 39.3% of 473 UK employment discussions. Performance improvement plans (27.3%) and discrimination or whistleblowing (26.8%) were the next most common.
Is there an average settlement agreement payout in the UK?
No official average is published. Acas research on conciliated COT3 settlements found a median of £3,000. What you may be offered depends on your salary, notice, length of service and the strength of any claim, which is why advice before signing matters.
Can I refuse a settlement agreement?
Yes. 14.2% of discussions in our study asked this. Refusing is not misconduct and does not end your employment. Usually the offer is improved, left open, or the employer continues its existing process. Can I refuse a settlement agreement?
Who pays for settlement agreement advice?
Your employer usually contributes to the independent legal advice you must take. 9.7% of discussions in our study asked about this. Who pays for settlement agreement advice?
How often is this data updated?
The study is reviewed every six months. Next review: February 2027. The page title is updated with the year at each review.
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Published 11 November 2026. Data from Deen & Co research published 25 August 2026. Written and reviewed by Taj Ahmed.