Signing Compromise Agreement

Kaz101

I have been made redundant and appealed but the company have decided that the redundancy still stands. They gave me the result on Wednesday. I am unhappy with the redundancy payment as I have worked there for 20 years and am only being offered two months salary on top of statutory. I work for a large London law firm. My solicitor is hoping to negotiate a better payment and I have told them that I am currently taking advice but the company have now given me a date of Monday 6th to sign the agreement. Can they do this or should it remain open until they hear from my solicitor? Thanks.

Joannef_2

I'm sure there will be someone who can give you detailed advice but in the meantime is your notice period 2 months? If the 2 months salary you are being offered on top of the statutory money is all you are getting, is there any benefit to you for signing a compromise agreement?

I too was made redundant from a London law firm this year. I thought by now the work in London might have started to pick up a bit but obviously not.

Uncertain

A compromise agreement is not valid unless you receive independent legal advice before signing (normally paid for by your employer). They must know this!!!

savingholmes

I would ask your solicitor what their advice is - the company sound unreasonable to me. I agree with the poster on the 2 month's pay. You would be entitled to a minimum of 12 weeks pay in lieu of notice unless they are making you work it anyway? Let us know how you get on

CFC

Are you certain this is a compromise agreement? As Uncertain says, the company needs to pay for independent legal advice before you sign one.

Horace

Don't sign any compromise agreement - you do that and basically you lose. Say you decided that you wanted to take your 'dismissal' to an employment tribunal by saying that you were unfairly selected for redundancy, if you signed the compromise agreement you wouldn't be able to do that because you have already entered into an agreement with them not to pursue the matter any further.

The company should wait until they have heard from your solicitor - don't whatever you do sign the agreement.

Good luck.

Pete111

If you are unhappy then you should avoid signing but the company does have the right to withdraw offer of an enhanced package that usually accompanies the signing of a CA if you refuse to sign it.

From what you have written though, it doesn't sound like they are offering you a great deal. As previously posted you should have 12 weeks notice (either worked or as a PILON) + 20 weeks (the amount varies depending on your age) worth of statutory redundancy pay. If they are offering you 2 months pay on top then it would be at the lower end of what I might expect given your length of service and profession.

It's up to you really. If you feel you have grounds to go to tribunal (or importantly, enough to scare them into coming back with a better offer) then you should dig in and call their bluff. If not then you may be better off signing, taking the extra and moving on.

Good luck either way.

Kaz101

Hi Everyone

Thanks for all your replies. I am getting my statutory entitlement - 12 weeks PILON and 20 weeks pay. The only extra I am being offered is 2 months pay (which everyone who has been there for longer than 2 is getting). I'm unhappy as it is being based on my salary now; I only work 2 days a week now, but worked 8 years full time, 7 years alternate weeks and now 5 years 2 days. So the only "enhancement" I am receiving is the 2 months pay, which works out at about £1,200 extra. So for 20 years I am receiving around £9,000 ! And as I said previously this is a large law firm whose peers are offering 3 to 3.5 weeks pay per year. I know that legally they can do this, but it is pretty measly. I have appealed as I think I was unfairly selected, but as I thought they would, they've stuck to the dismissal. My solicitor wants to negotiate but as they given me till end of business today it doesnt seem like they want to! I wont sign the CA as it stands at the moment as I feel what they are offering is derisory. I dont want to go to Tribunal although my solicitor feels I have grounds for unfair selection (they did increase two of my scores on the selection matrix, so either they agreed or they wanted it to look like they were being as far as poss). Anyway, thanks for your thoughts everyone, I'll post the outcome!

Kaz101

Hi Pete111

Do you think big firms worry about being taken to a Tribunal? Also I understand a Tribunal can only award up to a year's salary, is that correct? I'm debating if its worth (in times of stress and amount that can be awarded!) taking them to a Tribunal if they will not budge on offer in CA. Thanks for your time.

Pete111

Hi Kaz

No firm will want to be taken to tribunal - it's a major hassle and burns up lots of time/lawyers fees even before any award. In my opinion it is more likely a small firm will end up in tribunal due to poor advice and a big one due to the need to make a point or defend a position that will become far worse (ie with other similar claims) if one individual is paid off.

In terms of awards, the maximum award for unfair dismissal is 60 odd grand currently but tribunals factor in things like length of service and the ease with which the complainant may get another similar role etc so it is often less. In addition however, there are other areas where an award can be made, ie sex/age/racial discrimination. For many of these areas there is no cap on the maximum awards - hence the headlines every so often for sex discrimination in the city with 6 or even 7 figure awards being made.


Employers who have found to have breached company or statutory process may also have a multiplier attached to the award against them to take this into account as well as breach of employee rights.

The regulations governing workplace dispute procedure are literally just being changed to a new ACAS based system however and I need to get up to speed on the new regime - as such please treat this post as general rather than specific info.

Kaz101

Hi Pete

Thank you for taking the time to reply. My solicitor does think I have cause to go to Tribunal, as my written evaluations do not match the scores I received in the selection matrix. My only reservation is that as they are a law firm they'll know every trick in the book and will manage to twist their way out of most things and I dont suppose they'll be bothered about costs as they'll just put one of the employment solicitors on to it! Although I have been told by a colleague that they often "throw money" at things to make them go away ...! I'm grateful for your views and I'll consider further what I'm going to do.