Settlement agreement solicitors in London

London is the only city on this site served by three separate employment tribunals, and the only one where the statutory weekly cap removes more than a fifth of a typical local wage before the redundancy calculation even starts.

Where a London claim is heard

The London numbers

There is no single London employment tribunal

Everywhere else on this site, a city has one tribunal. London has three, and which one hears your claim is not your choice. HM Courts & Tribunals Service lists Central London Employment Tribunal at Victory House on Kingsway, London (South) Employment Tribunal in Croydon, and the East London Tribunal Hearing Centre. Allocation follows the employer’s location rather than yours, so two people who worked in the same building on different contracts can end up in different buildings months later.

For settlement purposes this matters less than it sounds and more than nothing. It matters less because the overwhelming majority of settlement agreements never reach a tribunal at all — that is what the employer is paying for. It matters more than nothing because the tribunal is the alternative the offer is priced against, and an alternative with a known address, a known listing backlog and a known travel time is easier to weigh than an abstraction.

The practical consequence is about the adviser rather than the venue. A firm that regularly deals with the London tribunals will tell you, on the first call, roughly how long a claim in that particular centre takes to be heard. That single figure changes how a deadline feels: an offer you are being asked to accept by Friday looks different when you know the realistic alternative runs into next year.

The statutory cap removes more in London than anywhere else on this site

Statutory redundancy pay is calculated on a week’s pay, and a week’s pay is capped. That cap is a flat national figure, applied identically in Kingsway and in Kirkcaldy, which means its practical effect is entirely a function of local earnings — and London’s are the highest in the United Kingdom.

The gap is not marginal. The median full-time job located in London pays more than a fifth above the statutory ceiling, so for a typical London worker the statutory calculation is already understating a week of their working life before anybody has argued about anything. Two people with identical service and identical ages, one in London and one in Leeds, receive the same statutory redundancy payment while having lost very different amounts.

That is not a flaw in the statute; a national cap is doing exactly what a national cap does. But it is the reason the statutory figure should be treated in London as a floor and nothing else, and it is the reason the negotiated half of the settlement carries proportionally more weight here than it does elsewhere. If the offer in front of you is built up from the statutory calculation and stops there, in London that is a particularly weak starting point.

There is a second London-specific number worth knowing. Jobs located in London pay noticeably more than London residents earn, because a large share of the highest-paying jobs in the city are done by people who commute into it. If you live outside London and worked in it, the figure that describes what you lost is the workplace one.

What a London salary does to the rest of the calculation

The cap is the obvious effect of high London pay on a settlement. There are two less obvious ones, and both cut against the employee.

The first is the tax threshold. The £30,000 figure in s.403 of the Income Tax (Earnings and Pensions) Act 2003 is also a flat national number, and a London settlement reaches it faster. A package that would sit comfortably under the threshold in most of the country routinely crosses it here, so the marginal pound of a London settlement is frequently a taxed pound. That is worth modelling before you agree a headline figure rather than after.

The second is the notice period. London contracts, particularly in financial and professional services, more often carry three or six months’ contractual notice than the statutory minimum — and notice pay is contractual, taxed in full, and sits in the half of the settlement that is not really negotiable. A London offer can therefore look large while containing very little compensation, because most of it is the notice you were owed anyway.

Both of these push the same way: in London, the split between the two halves of the offer deserves more attention than the total does. How the threshold and the notice rules interact.

A sign-off is usually done by phone and email, so a London postcode buys you nothing on its own. What is worth having is a firm that knows what the London tribunals are listing at, because that timescale is the alternative your offer is priced against. What the statutory role actually requires · who pays for it.

Common questions about London