Compromise Agreement - HELP NEEDED

JaneF1

I have just been handed a Compromise Agreement by my company.
I had a idea that they were needing to move me on as they needed someone more skilled and have no grounds to sack me.

I would have worked for the company for 2 years in January. In this time that company has messed me around a lot, moved from many different departments, no fault of my own.

The company has offered me £500 to leave and £250 for legal costs. They want me gone in a few days.

In my opinion I think £500 is very little to leave so quick without having something else lined up, especially taking into account time of year and the economy.

I've researched into the background of my agreement and all seems ok, I will also get this checked over by a legal adviser. I just need some advise from people who have been in the same position or know of someone who has, as the whether £500 is fair.
I have put a lot of time and effort into the company so I don't want to be conned, but on the same token I don't want to be rude and asked for more if I'm not entitled to it.

Any advice you can give will help.

Many thanks in advance

Tozer

Not enough info. Salary? Length of service? Notice period?

I should also say that assuming you see a decent EMPLOYMENT SPECIALIST solicitor (i.e. not a generalist), they will tell you, your entitlement.

KathysBoy

I agree with Tozer that you need to provide more information, but my inital reaction would be that £500 is not nearly enough. A compromise agreement (which you cannot sign without getting legal advice, which they must pay for) is basically just there way of trying to avoid any future claims by you for unfair dismissal etc. This is fair enough, PROVIDING you are properly compensated, and you are happy with it. If you are not, then don't sign it. More information would be more helpful. Assume you had a contract etc

JaneF1

£17500 pa
20 months service
2 weeks notice period.

I know that the solicitor will give me an idea but would like to hear from others and what they have experienced.

This has all just hit me in the last 2 hours so a bit blown away and just wanting some clarity.

Thanks for the comment

KathysBoy

JaneF1 wrote: »

£17500 pa
20 months service
2 weeks notice period.

I know that the solicitor will give me an idea but would like to hear from others and what they have experienced.

This has all just hit me in the last 2 hours so a bit blown away and just wanting some clarity.

Thanks for the comment

With less that 2 years service you're not entitled to statutory redundancy, so in contractual terms you're probably only entitled to your 2 weeks notice. So I assume the £500 is on top of this. As I said above, the compromise agreement will preclude you from making any subsequent unfair dismissal claims. With regard to your comment about needing someone more skilled, then your employer has a responsibilty to ensure that you recieve the appropriate training, and a reasonable amount of time for you to perform at the required level, so they can't just make you redundant and appoint someone else. They can only make your position redundant, and then they must consider whether there are other suitable positions for you, before they make you redundant. I would be very wary about signing a compromise agreement at this time. You really need to see an employment solicitor.

there's quite a lot of good info here about your rights.

http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/index.htm

zzzLazyDaisy

They have not followed proper procedures.

They want you to sign a compromise agreement because they want to make sure you cannot make a claim to an employment tribunal for unfair dismissal.

If you refuse to sign the compromise agreement chances are they will do one of three things

a) rescind the dismissal and make your life so uncomfortable that you will resign anyway

b) start the disciplinary process and find things to throw at you to justify dismissing you

c) carry on with the dismissal, with-hold all money owing to you, and hope that you capitulate and sign the CA because you really need the money to see you through till you can get another job.

Bear in mind that being dismissed MAY affect your ability to claim benefits, and they may also refuse to give you a reference unless you cooperate. So if you do decide to agree to the CA make sure it contains a clause agreeing the terms of a reference.

Also keep the CA safe - if you refuse to play ball and they go through a disciplinary procedure instead and then dismiss you, the CA can be used as evidence that the decision had already been made and therefore the procedure was a sham.

Most importantly, make sure that when you see the solicitor, you explain that you are not happy with the offer. You may wish to ask him to negotiate a better deal. BUT be warned - your employer will only pay your legal fees for SIGNING the CA - if there are protracted negotiations you may well end up with a sols bill to pay, which will reduce the value of the settlement. So You need to speak to the solicitor about fees before you do anything else, so you know where you stand.

You may find that you have to start proceedings in the employment tribunal before your employer will take you seriously. You do not need a solicitor to do that, and there are no tribunal fees for making a claim. You can get leaflets from the tribunal offfice, or the website to tell you what to do.

ACAS can also give information.

Good luck

EDIT - the above points are based on their wishing to dimiss you on the grounds of capability. If your position has genuinely ceased to exist (that is to say the role you have no longer exists, and you genuinely do not have the skills to do the proposed new role, then that would be a redundancy situation, and as you have less than two years service you are not entitled to a redundancy payment. But as someone else has said, they cannot simply dismiss you without consulation and without looking for alternative employment to offer you - and they cannot simply decide to replace you in your role by someone else.

Make sure you see a solicitor who specialises in employment law

JaneF1

Gosh a lot of food for thought. I will be booking an appointment with a solicitor tomorrow.
Thank you very much for all your advice KathysBoy and zzzLazyDaisy

dmg24

I agree that you need specialist advice on this. However, purely as an indicator, one multinational company that I know of offers one month for each year worked (rounded to the nearest full year), plus any bonuses that would have been awarded had the employee worked the full year. However, that is based on a situation where both parties wish to part company, and so much simpler than your own situation.

Hope you get something sorted x

kevfollowsspurs

I thought the laws had changed so that now you are entitled to statutory redundancy if you have 12 months service?

Tozer

kevfollowsspurs wrote: »

I thought the laws had changed so that now you are entitled to statutory redundancy if you have 12 months service?

No thats the qualifying period for unfair dismissal.

Incisor

JaneF1 wrote: »

Gosh a lot of food for thought. I will be booking an appointment with a solicitor tomorrow.
Thank you very much for all your advice KathysBoy and zzzLazyDaisy

Especially what zzLD says about keeping the proposed agreement!!!

Don't overplay your hand, but as long as you accept you will be out of there sooner or later [and probably sooner] this draft puts you in a better position. Personally I would be telling them that it was not good enough for me to take to a solicitor and looking for much better terms. Possibly full pay in lieu of notice plus 4 weeks? even that is not a lot, given how things are going.