Compromise Agreement and redundancy

ponymad_3

I am considering taking redundancy, which I can insist on as my role within the company has been downgraded and I have to be offered either the same grade job or a lower job which I will keep the same benefits and terms for 3 yrs, then move to a lower scale.. or redundancy. My situation is quite complex as unrelated to this I have been involved in a harassment case against me which has been in part upheld. I have now after asking for the money been asked to sign a compromise agreement... does anyone have any advice on this. Bascially I have to agree not to take them to a tribunal. (this is far from my mind but they obviously are scared of this) I work for a major company. My payout after 28yrs will be around 73k. I will of course have a large tax bill to pay. Interested in hearing from people with any experience in this. At this time, my union is looking into the situation. I think now they are being very sneaky in forcing me into a deal, which appears only to be a deal for them! Where is the compromise. It feels like hush money, not what in our T and C s I am due.

getmore4less

It's the begining of the tax years so with £30k tax free thats £42k on top of earnings so far, most will be at 20%

The tax will be 40% when you get new income. along with NI it might not be worth working to only get 1/2 the money unless you can find something that will pay low and give a bonus next tax year.


ASk for more if they want a CA, no point if the regular redundacy would be the payout on offer.

Uncertain

Some thoughts.....

If they were to make you redundant (legally) what would be your minimum legal entitlement?

Assuming they are offering you more your choices are to accept on their terms (i.e. sign the CA), negotiate or refuse and fight.

For a CA to be valid you have to receive independent legal advice and it is normal (not obligatory) for the firm to pay an amount towards this. However, this is unlikely to be enough to pay a solicitor to argue with them, simply to advise you of your rights and make sure you understand that you are signing away pretty much every possible claim (one or two things cannot be excluded).

You need a realistic legal assessment of the strength of any claim you may have against them and the likely value.

If, and only if, this is (significantly) more than you are being offered then you also need to consider the risks and put a value on the stress that would be involved in fighting.

Finally, the first £30K of the CA settlement would normally be tax free.

ponymad_3

Thanks so far for the info....

To clarify-I do not have to take redundancy.... if before the harassment case(which has taken over a year and a huge amount of stress) I had the redundancy offer on the table I would almost certainly have accepted. After the case completed, when I recd a final written warning for 12 months, my employer or more specifically my line manager asked me to move to another location as the job I have been doing for the last year was a lower grade than I actually am. However the job offered was still a lower grade, another alternative was for me to stay in my current job and I requested that as redundancy was an option, basically both roles are a benefit break lower than my actual grade and our T and Cs state if this is the case redundancy must be offered, I would also like to look at this. At first she told me this was not available... I requested she relook at this through HR and she then called me to say I was right..

It was then requested that I meet with a senior HR manager at short notice, 3pm to meet at 9.15am next day.

Basically they are now trying to tie the two things together.

I am being offered nothing other than my T and Cs, I do not think they can get out of this.

I do think potentially that the way I have been treated I would have a claim against my employer but have no intention of taking this route, whatever asolicitor says. I could not get through another year like this. I do think that the upper management now think severe mistakes were made in how I was mananged over this period. So I can see how and why they wish to protect themselves against any further action. During my defence I have stated that I have not been treated as expected by my doctor , my union

Compromise suggests just that, an agreement.... It now seems they would like me to leave without being able to discuss further with the money I am absolutely due ... Is this normal or should I be negotiating something better ... the situation with reference is not yet clarified ... without a factual clean ref I will not be able to move on...

This is the only blot on a very sucessful career and the individual who I sales managed is a consistent under performer and indeed still under performing now

I am not sure if they are actually trying to call my bluff, keep me in role , effectively downgrading me which was not in any way part of the investigation or outcome and save themselves 73k?

hcb42

If it's been stressful and you can get £73K and an end to it all, then it would appear to be worth it, for closure

SarEl

Or, alternatively, you could look at it as a good deal. They are not asking for a compromise agreement out of any fear of what you might do - this is normal in such agreements for redundancy. On the other hand, you have a final written warning for a serious allegation against you being upheld. The bottom line is that you have only to be late for work, get caught sending an e-mail for personal reasons, or sneeze in front of the wrong person, and you are history.Without any redundancy. Personally, I'd sign the agreement post haste.

ponymad_3

Thanks SarEl ... Can understand your reply and you may of course be right.... Tho I have never done anything wrong before and IMHO whilst part of the allegation was found against me, and I have to accept this...based on the fact no one during this time has decided they should coach me etc , the allegation was on sales management issue and my line manager on my moving me to a new role temporarily advised me to place 3 staff newly under my control under performance improvement plans the whole situation is a bit bizarre.... If they thought I was a liability why would they then put me in this situation... This would be a difficult position for them to defend in a tribunal.... However I am particularly interested in anyones view on whether I should gain anything in a Compromise Agreement.... The union view is that I should get the redundancy without the agreement as it is a completley different issue in that my job has been downgraded and they cannot offer me a suitable alternative

getmore4less

IME CA have never been required for genuine redundancy situations.

IF the T&C make redundancy an option with agreed payouts then the are asking for more so need to offer something back.

The risk is they come up a suitable job.

You would want an agreed reference and after 28 years and you wanting another job then some outplacement support might be something to ask for.

What do the union think the CA is worth on top.


I can see the benifits in a CA, good reference and clean break.


Another way to reduce tax is to pension some of the money, or any new income.

ponymad_3

I am on your wavelength here...

'IF the T&C make redundancy an option with agreed payouts then the are asking for more so need to offer something back.'....At the meeting with HR the CA came out of the blue I was just expecting discussion on Redundancy... Having gone on holiday the next working day I am going to speak again to my union guy tomo who has been taking advice. Will wait for his advice

I really dont see why I would agree to CA if they don t offer in return... my friends think the company are pretty worried they have not handled things right and I would have a grievance claim and this is why they want me to sign. I will not go down this route, although it is fair to say if the disciplinary had resulted in dismissal (no one believed it would, including my boss , but no one knew for sure including me until the day of the hearing) I would have taken them all the way.

I would take the suitable job and thought perhaps this was going to be offered but not! ( disappointed in a way as we all want to be loved don t we)

Cannot leave without a good ref and they must know this.... the job I am leaving brings me into HRT so not a bad job and I do need to find another although would not need same package

In relation to Pension.... at this time would not put lump sum in ,unless i get job, have got 28yrs in None contrib final sal pension.... I believe i could place salary in in the tax yr when I get job?

Uncertain

ponymad wrote: »

I am on your wavelength here...

'IF the T&C make redundancy an option with agreed payouts then the are asking for more so need to offer something back.'....At the meeting with HR the CA came out of the blue I was just expecting discussion on Redundancy... Having gone on holiday the next working day I am going to speak again to my union guy tomo who has been taking advice. Will wait for his advice

I really dont see why I would agree to CA if they don t offer in return... my friends think the company are pretty worried they have not handled things right and I would have a grievance claim and this is why they want me to sign. I will not go down this route, although it is fair to say if the disciplinary had resulted in dismissal (no one believed it would, including my boss , but no one knew for sure including me until the day of the hearing) I would have taken them all the way.

I would take the suitable job and thought perhaps this was going to be offered but not! ( disappointed in a way as we all want to be loved don t we)

Cannot leave without a good ref and they must know this.... the job I am leaving brings me into HRT so not a bad job and I do need to find another although would not need same package

In relation to Pension.... at this time would not put lump sum in ,unless i get job, have got 28yrs in None contrib final sal pension.... I believe i could place salary in in the tax yr when I get job?

It is not uncommon for firms to ask for a CA in more senior positions. If they are offering anything at all above statutory then they can make this a condition. An agreed reference is potentially worth a lot and may not be forthcoming if there is any friction to do with your departure unless it is protected by a CA. In fact it is the only way you can get any control over the reference position.

SarEl's advice is excellent. I would think very long and hard before turning this offer down.