Made Redundant with Compromise Agreement

BoogieWoogie_3

HI All

After a bit of advice.

I have been made redundant and the company issued a compromise agreement as they basically wanted us all out the same day and didnt offer a consultation period.

The compromise agreement obviously has a payment (none of it is payment in lieu of notice) as the agreement waves the notice period.

The payment is lower than the £30k tax free limit.

Do i have to tell the job center about this payment when i start claiming job seekers allowance?

My paymentshield policy states that it wont pay out if there is "payment in lieu of notice" defined as any payment that i receive instead of my notice period BUT it also states it includes any part of a compensation payment including any part of a payment under a compromise agreement.

So does that mean i can never claim under this policy due to the compromise agreement payment? or can i pay when the money runs out? It seems crazy that I am out of work through redundancy and yet cannot claim on my insurance I have had since august 2006.

Thanks in advance

getmore4less

I think rather than never pay out the insurance should start at the end of any notice you should have.

Have had legal advice(paid for by the employer) for this comprimise agreement?

tippytop

Hi

I just posted about Compromise Agreement and the saw your thread and maybe you can answer a question for me.

Did you get offered and additional payment to sign the compromise agreement. Just wondering as my OH has been asked to sign but was not offered an incentive to do so.

Horace

OP did you sign the compromise agreement? If you didnt then take your employer to an employment tribunal especially as they didnt follow the correct notice procedures when making you redundant.

You do have to tell the jobcentre that you have received redundancy pay when you go to sign on.

Sorry I don't know about your insurance policy you will have to check that.

BoogieWoogie_3

Yes i signed the compromise agreement on the advice of a solicitor. I dont have savings and cant afford to wait to get payout from a tribunal. the whole situation has left me really distraught so I just want it all over with as soon as possible.

I will call the mppi company to see if they will pay out at the end of my notice period (3 months). At least my compromise payment covers me past this time anyway. Its just with the employment market as it is I was hoping the policy would pay out straight away.

BoogieWoogie_3

Hi TippyTop

As part of the compromise agreement I receive a payment so I guess yes is the answer if that is what you mean.

My understanding is that they have to compensate you in some way to make a contract valid and also they need to pay you to appropriately compensate you for the loss of employment. The employer is legally obliged to pay for your OH to see a solicitor as any agreement is not legally valid until he has had advice from a solicitor.

The only reason they should need a compromise agreement is because they havent followed correct procedure or have done something else wrong. It's main purpose is to prevent your OH from commencing legal proceedings/ a tribunal against them

Hope that helps a little and answers your question

tippytop

Hi BoogieWoogie (great name)

Thanks for answering my question. OH was about to sign as we do not know much about this sort of thing but as he was made redundant the same day as he was told he thought it seemed wrong. We have contacted his union and they agreed with what you said.

Good luck with finding another job.

BoogieWoogie_3

Hi again tippytop

Was going to call myself BoogieWoogieWooWoo but that's just silly!!

Hope all goes well with your OH too. Makes you wonder who the unscrupulous !!!!!!s are at the top of a lot of these companies when they try to get your OH to sign away his rights without advice.