Advice Needed onj Compromise Agreement

Thmas_Covenant

Need a little advice on a compromise agreement - any experts here who could PM me? Little bit concerned because of stage of negotiations - basically need to understand implications of circumstances of leaving and payout on benefits.
Thanks

mynameistallulah

If you want an "expert" you really should be seeing a solicitor, in fact your employer should pay for you to have a consultation before signing. If your questions are more general I'm sure we will be able to help if you post them here.

Thmas_Covenant

I am seeing a solicitor, yes.
Situation is that I am leaving by mutual consent, I believe the term is. Receiving a pay off. Not technically redundant, circumstances are complicated, but in general will that affect my benefits entitlement if I claim?

mynameistallulah

Entitlement to benefits will depend on the reason behind the CA. If it is an alternative to voluntary redundancy, no sanction will be applied. If it is due to misconduct on your part, a sanction of up to 26 weeks will be applied. The DWP decision maker will ask you why you left, and they will also write to your employer. It would be advisable to agree with your employer what they will say before leaving.

If you are receiving PILON as part of your CA, you will not be entitled to benefits for the notice period. If you are receiving a lump sum, your entitlement will only be affected if you are claiming IB JSA. If you have paid sufficient NI Conts, you will be able to claim CB JSA for six months, this will not be affected by the lump sum. After this period, any capital over £6,000 will lead to a tariff deduction from your JSA, and capital over £16,000 will result in no payment being made.

princessdon

The reason for leaving should be covered in the CA

Eg If it was redundancy it covers the package in detail in the CA including any ex gratia payments and you can get wording added such as compulsory (even if mutual) if you need to claim mortgage protection etc.

But the solicitor should really be answering these questions. If it is purely benefits advice then remove the CA from the question


Ie if I take Vol or comp redundancy with a package of XXX, how much PILON etc what can I claim and from when.

getmore4less

mynameistallulah wrote: »

Entitlement to benefits will depend on the reason behind the CA. If it is an alternative to voluntary redundancy, no sanction will be applied. If it is due to misconduct on your part, a sanction of up to 26 weeks will be applied. The DWP decision maker will ask you why you left, and they will also write to your employer. It would be advisable to agree with your employer what they will say before leaving.

If you are receiving PILON as part of your CA, you will not be entitled to benefits for the notice period. If you are receiving a lump sum, your entitlement will only be affected if you are claiming IB JSA. If you have paid sufficient NI Conts, you will be able to claim CB JSA for six months, this will not be affected by the lump sum. After this period, any capital over £6,000 will lead to a tariff deduction from your JSA, and capital over £16,000 will result in no payment being made.

Not true, you can claim JSA from the day your employment terminates.