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  • FIRST POST
    • baled
    • By baled 14th Jun 17, 7:36 AM
    • 20Posts
    • 1Thanks
    baled
    Settlement agreement possible for a temp worker?
    • #1
    • 14th Jun 17, 7:36 AM
    Settlement agreement possible for a temp worker? 14th Jun 17 at 7:36 AM
    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.
Page 1
    • sangie595
    • By sangie595 14th Jun 17, 8:18 AM
    • 3,183 Posts
    • 5,184 Thanks
    sangie595
    • #2
    • 14th Jun 17, 8:18 AM
    • #2
    • 14th Jun 17, 8:18 AM
    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.
    Originally posted by baled
    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
    • By glentoran99 14th Jun 17, 8:23 AM
    • 4,274 Posts
    • 3,136 Thanks
    glentoran99
    • #3
    • 14th Jun 17, 8:23 AM
    • #3
    • 14th Jun 17, 8:23 AM
    no doubt the agency will take a whack of it too
    • baled
    • By baled 14th Jun 17, 9:02 AM
    • 20 Posts
    • 1 Thanks
    baled
    • #4
    • 14th Jun 17, 9:02 AM
    • #4
    • 14th Jun 17, 9:02 AM
    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.
    Originally posted by sangie595
    Thanks for clarifying that. Something is better than nothing at least!
    • baled
    • By baled 14th Jun 17, 9:04 AM
    • 20 Posts
    • 1 Thanks
    baled
    • #5
    • 14th Jun 17, 9:04 AM
    • #5
    • 14th Jun 17, 9:04 AM
    no doubt the agency will take a whack of it too
    Originally posted by glentoran99
    The agency won't take a cut, they'll invoice the company for the payment.
    • sangie595
    • By sangie595 14th Jun 17, 9:10 AM
    • 3,183 Posts
    • 5,184 Thanks
    sangie595
    • #6
    • 14th Jun 17, 9:10 AM
    • #6
    • 14th Jun 17, 9:10 AM
    Thanks for clarifying that. Something is better than nothing at least!
    Originally posted by baled
    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
    • By getmore4less 14th Jun 17, 9:14 AM
    • 28,775 Posts
    • 17,209 Thanks
    getmore4less
    • #7
    • 14th Jun 17, 9:14 AM
    • #7
    • 14th Jun 17, 9:14 AM
    very nice of them.

    They could have looked at employing you properly and them making the payment.
    • glentoran99
    • By glentoran99 14th Jun 17, 10:36 AM
    • 4,274 Posts
    • 3,136 Thanks
    glentoran99
    • #8
    • 14th Jun 17, 10:36 AM
    • #8
    • 14th Jun 17, 10:36 AM
    The agency won't take a cut, they'll invoice the company for the payment.
    Originally posted by baled


    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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