Help - redundancy pay not paid and deadline passed!

pippitypip_2

I have to be a bit cryptic as my mate needs to be keeping to the letter of the compromise agreement he signed, even though it seems the company have already broken the agreement.

Deadline given in compromise agreement has passed and money not paid. No proper reason given, they're "looking into it". They say it's "delayed" that it will be coming - this can't be allowed - surely?

My mate is severely skint (obviously signing on etc) but still waiting on help with the mortgage - and in real dire straits - this is money they agreed to pay him!

Are they a) allowed to delay, given the compromise agreement which they agreed to pay within a certain time frame, or worse b) not pay at all? Keep delaying etc ?

Note the company has not gone bankrupt and is not entering into proceedings or similar.

Many thanks for any input on the little info I can give..
pippitypip

getmore4less

I would talk to the indepedant solicitor that was used for the CA.

unhappysky

As it is a compromise agreement, rather than redundancy pay - they may well be allowed to delay it as it's not actually money that they 'owe' you.

tandraig

i would have thought a promise to pay - on whatever date means they owe you money - doesnt the word pay mean money owed for whatever reason? I would contact the solicitor used for the CA. threaten court proceedings or ask if they would prefer employment tribunal.

pippitypip_2

Thanks everyone for the replies.

The compromise agreement does also cover redundancy pay, I've seen it - we will pay you xxx within xx days of termination. or something similar off the top of my head.

The company paid for the solicitor to review the compromise agreement but don't know if they would pay for follow up (considering they're withholding redundancy pay I would think this unlikely) but will def suggest he contact them.

This is so shocking it can't be right that they can do this !!!! :mad:
pippitypip

jazzyman01

Have you tried writing to them advising they are outside of the time limits? Advise them that you feel they have breached the agreement and, if you do not receive payment within 5 working days you will seek recourse through an employment Tribunal?

pippitypip_2

Thanks jazzyman.

The problem is I don't know what legal grounds my friend has.

Can he threaten to go to an employment tribunal - is that the right place for this?

I think his best bet is to get some legal advice on where he stands and hopefully the original lawyer will help as a starting point.

Thanks,
pippitypip

Debt_Free_Chick

How late is the payment - days, weeks?

Has there been nothing further from the company since they said they were "looking in to it"?

It could simply be a sloppy mistake e.g. someone in HR failed to raise the correct payment authorisation! But a bit more info would help

pippitypip_2

Thanks. 2 weeks late now. still saying delayed, no estimate on when they'll be paying.

The solicitor has been great and is writing them a letter on his behalf (and a few others it's happened to as well same company) and he's doing it for free at the mo which is fantastic.

I can't really go into more detail without being obvious and therefore breaking his side of the compromise agreement, as in theory, he shouldn't be talking to me about it and I shouldn't be posting about it in a public forum either, if you think about the confidentiality side of things!

many thanks for the help though. I guess he'll just have to leave it in the hands of the solicitor now..

pippitypip

getmore4less

Thinking about it for future reference.

I think I would be looking to put a penalty clause in any CA for late payments, perhaps interest at 10% over base or LIBOR.

pippitypip_2

getmore4less wrote: »

Thinking about it for future reference.

I think I would be looking to put a penalty clause in any CA for late payments, perhaps interest at 10% over base or LIBOR.

what fab advice. Thank you! I hope i remember this if i ever get made redundant. Bet it would be difficult to get them to agree though? Very interesting idea though. I wonder if anyone's been successful at negotiating that in? Thanks, pippitypip.