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Ask Samantha / Redundancy & exits

Redundancy & exits

Can I just pay someone to leave?

Answered by Samantha Newton FCIPD, Chartered Fellow CIPD · Last reviewed August 2026

Often yes, and it can be the cleanest, kindest and cheapest way out of something that's going nowhere. The usual route is a settlement agreement. They get an agreed sum and a clean reference, and in return they give up the right to bring claims. It only becomes binding once they've had independent legal advice, which you'd normally chip in towards.

The bit to get right is how you raise it. A clumsy or pushy approach can itself become evidence in a claim if the deal doesn't happen. There's a 'protected conversation' route that keeps an off-the-record chat out of most later disputes, but it has limits, and it doesn't cover discrimination. Set it up properly and it protects both sides. Get it wrong and it backfires.

Important

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General guidance to help you decide your next step, not legal advice. Employment law changes, so always check the current position for your own situation.

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