Settlement agreement possible for a temp worker?

baled_2
baled_2 Posts: 20 Forumite
in Redundancy & redundancy planning
Hi

I've been temping at the same company through an agency for nearly 5 years.

The company are closing the site at the end of August and our department is relocating out of the UK so my colleagues will be receiving severance pay.

The company HR have very generously offered me an incentive bonus of 9k as they cannot offer me their severance package. It is to be paid through my agency who pay my weekly wages.

Is it possible to rework this bonus as a settlement agreement or is that just wishful thinking?

Thanks.

Comments

  • sangie595
    sangie595 Posts: 6,092 Forumite
    baled wrote: »
    Hi

    I've been temping at the same company through an agency for nearly 5 years.

    The company are closing the site at the end of August and our department is relocating out of the UK so my colleagues will be receiving severance pay.

    The company HR have very generously offered me an incentive bonus of 9k as they cannot offer me their severance package. It is to be paid through my agency who pay my weekly wages.

    Is it possible to rework this bonus as a settlement agreement or is that just wishful thinking?

    Thanks.
    Wishful thinking. A settlement agreement is something that is defined in tax law - what you are suggesting is tax evasion, not tax avoidance, and the agency would be responsible for it. You would be asking them to lie about the purpose of the payment, and they would be stupid to lie to HMRC.
  • glentoran99
    glentoran99 Posts: 5,821 Forumite
    First Anniversary Combo Breaker First Post Debt-free and Proud!
    no doubt the agency will take a whack of it too
  • baled_2
    baled_2 Posts: 20 Forumite
    sangie595 wrote: »
    Wishful thinking. A settlement agreement is something that is defined in tax law - what you are suggesting is tax evasion, not tax avoidance, and the agency would be responsible for it. You would be asking them to lie about the purpose of the payment, and they would be stupid to lie to HMRC.

    Thanks for clarifying that. Something is better than nothing at least!
  • baled_2
    baled_2 Posts: 20 Forumite
    glentoran99 wrote: »
    no doubt the agency will take a whack of it too

    The agency won't take a cut, they'll invoice the company for the payment. :)
  • sangie595
    sangie595 Posts: 6,092 Forumite
    baled wrote: »
    Thanks for clarifying that. Something is better than nothing at least!
    It certainly is. It's most generous of the company to consider such a payment to a worker from an agency - very few would.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    very nice of them.

    They could have looked at employing you properly and them making the payment.
  • glentoran99
    glentoran99 Posts: 5,821 Forumite
    First Anniversary Combo Breaker First Post Debt-free and Proud!
    baled wrote: »
    The agency won't take a cut, they'll invoice the company for the payment. :)



    Its been known to happen, Agency pays x per hour to employee, But the company pays y to the agency, Effectively taking a cut,


    I actually got my current job by telling the employer I would take less than they were paying the agency which was still more than I was getting
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