Outplacement and training budget in a settlement agreement

Negotiate practical support and a clear budget that you can use purposefully for your next career step.

Turn a general offer into a workable arrangement

Outplacement can assist with career planning, job applications and finding new work. A training budget can be used for education, certification or retraining. Neither is automatically included in every settlement agreement.

Record the amount available, its permitted uses, who selects the provider and the deadline for using the budget.

Choose what suits your situation

A standard outplacement programme is not always the best solution. Targeted training, coaching or a combination may sometimes be more valuable for your next step.

Which terms should be agreed specifically?

A good budget is flexible enough to be useful and clear enough to spend later without dispute.

Amount of the budget

Record a maximum amount and state clearly whether VAT, examinations, materials and other additional costs are included.

Free choice or nominated provider

Agree whether you may choose your own coach or course or must use a provider selected by the employer.

Deadline and payment method

Determine the deadline for registering, invoicing or starting and whether the employer pays the provider directly.

Unused budget

Record what happens to any balance. Do not assume, without a written agreement, that unused budget will be paid to you.

Which is more valuable to you: outplacement or training?

Outplacement usually focuses on support in finding new work, such as career assessment, preparing a CV, interview preparation and coaching. Training focuses on knowledge, skills or a recognised qualification.

Negotiate flexibility if your next step has not yet been decided. Also check whether coaching and training may be combined within the same budget.

View the full negotiation guide

Review the career budget in four steps

1Define your objective
Decide whether you primarily need coaching, training, certification or a combination.

2Check the permitted expenditure
Review the amount, VAT, additional costs and freedom to choose your own provider.

3Record the deadlines
State when you must choose, register, start and submit invoices.

4Deal with exceptions
Agree what happens in the event of cancellation, delay or an unused balance.

Check that the arrangement is genuinely workable

A budget that sounds generous may be of little value if the deadline is too short or only one unsuitable provider may be used. Assess both the amount and the conditions.

Also have the arrangement checked against the termination date, garden leave and the other financial provisions.

Have your proposal reviewed

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