When leaving is the right call
You do not have to prove the bullying to yourself any further. If the behaviour has continued after a formal process, if your health is deteriorating, or if the organisation has made clear that it will not act, then staying is no longer a neutral choice. It has a cost, and you are the one paying it.
That does not make leaving easy or fair. It is worth naming plainly: the person who was harmed usually ends up being the one who moves. Recognising that is not defeat. It is a decision about where your remaining energy goes.
usual tax free ceiling on the compensation element of a termination payment
HMRC, current rules
unfair dismissal qualifying period from 1 January 2027, down from two years
Employment Rights Act 2025
less one day, the usual tribunal time limit, paused by Acas early conciliation
Acas, current guidance
UK workers experienced conflict or abuse at work in the last year
CIPD Good Work Index, 2024
Resignation versus a negotiated exit
There are two ways out, and they are not equally good. A simple resignation is always available to you. You give the notice your contract requires, and you either work it or are paid in lieu. It is clean, it is quick, and it gives you no leverage at all over the wording of your reference or over money.
A negotiated exit, usually documented as a settlement agreement or as a COT3 through Acas, is normally the better route where bullying is involved. In return for waiving your right to bring claims, employers typically offer some combination of:
- A financial package, usually notice pay plus a compensation element
- An agreed reference, with the wording written into the agreement
- Garden leave or an earlier release date, so you can start looking sooner
- A non disparagement clause, which you should ask to be mutual
- A contribution towards your legal fees
Two cautions. Non disparagement is often drafted one way, binding you and not them, so ask for it to run in both directions. And a settlement agreement is only legally binding once you have taken independent legal advice, which is why the employer usually contributes towards it.
How settlement talks usually start
Settlement conversations rarely begin with a formal offer. More often they begin with a manager or HR saying something like "perhaps we should talk about how this ends". That kind of conversation is often held without prejudice or as a protected conversation, which means it usually cannot be quoted against you later. You can open the conversation too, and you can do it in writing.
Acas early conciliation is the other common route. Notifying Acas pauses the tribunal clock while conciliation runs, and it often opens settlement talks without either side committing to litigation. Any agreement reached through Acas is recorded on a COT3, which does not require you to take separate legal advice.
Before you resign
- Work out your contractual notice, any pay in lieu clause, and your accrued but untaken holiday.
- Check for legal expenses cover on your home insurance, or free representation through a union.
- Gather your dated record of incidents in one place, and keep a copy on a personal device.
- Notify Acas early conciliation if you think you may have a claim. It pauses the time limit.
- Ask for any offer to be broken down into notice, holiday, and compensation so you can see the tax position.
- Do not resign on a bad day. Decide on an ordinary day, using the record you have already kept.
References and what can be said about you
Employers are not generally obliged to give a detailed reference, but most will give something. Where a reference is given it must be true, accurate and fair, and it must not be misleading by omission.
In a settlement you can negotiate the exact wording in advance, and attach it to the agreement so there is no argument later. Without one, most organisations will confirm only your job title and your dates of employment, which is a perfectly normal thing for a new employer to receive.
Explaining the exit later
Keep it brief and forward looking. One neutral sentence is usually enough:
The culture was not a good long term fit. I am looking for a team where clear feedback and psychological safety are the norm.
Then stop talking. Most interviewers move on. If they press, give one concrete and unemotional example, such as high turnover in the team or unclear priorities, and turn the answer back towards what you are looking for next. Interviewers are listening for how you handle difficulty, not for the details of the difficulty itself.
Money and benefits while you transition
Check your sick pay position before you go off sick. Statutory sick pay is the floor. Many contracts provide occupational sick pay that is more generous for a fixed period, and knowing where that period ends changes the timing of everything else.
If you resign, you may still be able to claim Universal Credit, and contribution based Jobseeker's Allowance if you have the right National Insurance record. Be aware that leaving a job voluntarily can trigger a sanction of up to thirteen weeks. You can argue that you had good reason, for example ill health or conditions that were intolerable, and medical evidence and your written record both help you make that case.
Also check any income protection insurance you hold personally, and any group income protection provided through work, since cover sometimes continues for a period after employment ends. Keep records of everything: payslips, the agreement, correspondence, and your own timeline.
Practical money checklist
- Confirm the end date of any occupational sick pay before deciding when to go off sick.
- Ask for a written breakdown of any offer: notice, holiday, compensation, and the tax treatment of each.
- Check whether the thirty thousand pound tax free allowance has been applied to the right element.
- Find out whether benefits such as private medical cover or life assurance end on your last day.
- Keep copies of everything on a personal device before your work account is closed.
This guide is information, not legal advice. Employment law changes, and outcomes depend heavily on your own contract and circumstances. Take advice from a solicitor, a union representative, Acas on 0300 123 1100, or Citizens Advice before making a decision you cannot reverse.
Prefer to read this offline? Get The HeartBrain Workplace Bullying Handbook emailed to you free.
Common questions
Can I claim constructive dismissal if I resign because of bullying?
Only if the employer's conduct was a fundamental breach of contract, including the implied duty of trust and confidence, and you resign in response without undue delay. These claims are difficult to win. Most employees currently need two years' service, though from 1 January 2027 that qualifying period drops to six months. Take advice before you resign.
Will a settlement agreement stop me working in the same sector?
Almost never. Restrictive covenants sit in your employment contract and are separate from a settlement agreement, and they must be reasonable to be enforceable. A standard settlement waives claims and sets the terms of your exit. It does not ban you from your industry.
Should I go off sick before resigning?
Sometimes. Medical evidence recording the work related cause strengthens both a settlement negotiation and any later claim, and it protects your health while you decide. It can also complicate pay and timing. Discuss it with your GP and with a solicitor or union representative before you act.
Is a settlement payment tax free?
Partly. The compensation element of a termination payment is usually tax free up to thirty thousand pounds. Notice pay is taxable in full under the post employment notice pay rules, and so is holiday pay and anything you were contractually owed. Ask for the offer to be broken down before you sign.
Do I have to pay for legal advice on a settlement agreement?
A settlement agreement is only binding if you have taken independent legal advice, and employers normally pay a contribution towards that advice, often several hundred pounds. Check whether the contribution covers the full cost, and check any legal expenses cover on your home insurance or through your union first.
HeartBrain
A community for people being bullied at work
HeartBrain is a free, anonymous community and resource library for anyone affected by workplace bullying and harassment, plus a culture questionnaire for organisations serious about fixing it. We are opening soon.
If you are struggling right now, you do not have to wait for us. In the UK, Samaritans are free on 116 123, day or night. Acas offer free workplace advice on 0300 123 1100.
Keep reading
Back to all guidesWhat workplace bullying actually looks like
Twenty five named behaviours, grouped into the five patterns bullying almost always follows.
When the person bullying you is your manager
The power imbalance changes everything. Here is how to handle it without losing your footing.
When it is a peer, not a boss
Peer bullying is the most under reported kind. It is also the most survivable with the right people around you.
Signs of a toxic work environment
Twelve signs, scored. Find out whether it is a bad week or a broken culture.