‘Shut Up and Go Away’ Money – let’s talk about it.
Every experienced employer has either paid it, thought about paying it, or been advised to pay it. I’m talking about shut up and go away money – the kind of payment made not because you’ve done something wrong, but because it’s simply cheaper, faster, and far less painful than defending a workplace claim.
It might be an unfair dismissal application, a general protections claim, or some other dispute raised after an employment relationship sours. The claim may be thin on facts or riddled with legal issues; but defending it? That takes time, energy, legal fees, and a degree of patience that most business owners can’t afford.
And so, businesses settle. Not because the law says they should. Not because the claim has merit. But because it’s a commercial decision, a way to shut it down, move on, and refocus energy where it actually matters: the business, the team, and the future.
But here’s the rub: while settlement might feel like the best option in the moment, repeated payouts (even modest ones) can have long-term cultural costs. They can reinforce a perception that bluff and bluster pays, that making noise leads to money.
So what’s the solution?
- Sometimes, the right call IS to settle – fast, strategically, and confidentially.
- Other times, it’s worth digging in and sending a clear message: this business doesn’t respond to pressure, it responds to principles.
- And always, ALWAYS, it’s worth having a proper process in place from the start. That’s what gives you the confidence to choose your battles wisely.
If you’re facing this dilemma (or want to build your defences before the next one lands), get the right advice early. And remember – just because a claim lands on your desk doesn’t mean you’re in the wrong, it just means you’ve got a strategic decision to make.
We recently assisted an employer defend an unfair dismissal claim.
The employer? Compliant and followed a procedurally fair and transparent process.
The employee? Filed the claim anyway, because the Fair Work system is designed to be accessible (not designed to weed out the genuine from the non-genuine claims).
The outcome? No financial settlement. Not one dollar paid out.
This isn’t the first time we’ve reached a settlement without having to pay ‘shut up and go away’ money.
How did we do this? We patiently and strategically negotiated a settlement agreement that genuinely reflected the employer’s compliance, and the employer’s strong belief that money should not be paid to an employee who was terminated for cause. It was a hard-fought settlement, but one we’re proud of at WLG. Whilst we believe in the economy of ‘shut up and go away’ money where the situation requires it to save your time, energy and stress – we will similarly fight hard to avoid employers paying out money unless it’s absolutely necessary.
Get in touch to discuss your options with our team.