Compromise agreement and settlement

moneypudden

Hi,

I'd be grateful for any advice on a few points as to the way forward. With the aid of my union i am sorting out a compromise agreement, agreed reference and financial settlement. All scary stuff since i'm the wrong side of 50 but the aim now is to move forward, sign on with agencies and try to pick up work. It's the practical things i'd like advice on, especially if anyone's been in a similar position -

a) I'll get roughly the equivalent of 5 months wages and will need to live off that for a while. Am i best putting it in an easy access savings account, to draw on as i need it or is there a better way of going about earning some interest, but with access to my money?

b) Applying for jobs, what do i put on the application form as reason for leaving, is stating the obvious going to put employers off right away and not even give me a chance of an interview?:think:

Thanks

Sambucus_Nigra

Your independent legal advisor should be advising on this, not people on the internet. That's why it's paid for by the company.

Uncertain

moneypudden wrote: »

b) Applying for jobs, what do i put on the application form as reason for leaving, is stating the obvious going to put employers off right away and not even give me a chance of an interview?:think:

Most standard compromise agreements have a confidentiality clause requiring both sides to keep both the terms and the existence of the agreement confidential. Normally there is an exception if you are required to disclose it to a prospective employer as part of an application but that doesn't mean you have to.

It is important to make sure the agreed reference is well tied down. Make sure it clearly states that any reference given orally with conform exactly with the agreed written reference. It may also be possible to include a term to the effect that the former employer may only give information above and beyond the agreed reference with your express permission. Obviously this depends to some extent on the strength of your negotiating position but concessions in this area don't cost the firm anything so they are likely to agree if they are keen to get it settled.

Any lump sum (up to £30K) paid as compensation for the loss of your employment should be tax free but any part of the settlement that is a contractual entitlement is generally taxable.

ILW

What was the reason for the compromise agreement?
Could have a bearing on what you tell future employers.

Uncertain

Sambucus_Nigra wrote: »

Your independent legal advisor should be advising on this, not people on the internet. That's why it's paid for by the company.

Yes and no!

Generally the legal fee included in the agreement will be the absolute minimum needed to pay for a solicitor to do only what is required by law and no more. Anything beyond this and certainly negotiating on the OP's behalf is seldom included.

Note also that there is no hard and fast requirement for the employer to pay the employee's legal fee (although is is customary). In some circumstances, a specially trained and insured trade union official can advise the employee and provide the necessary certificate - although I wouldn't recommend it!

phill99

ILW wrote: »

What was the reason for the compromise agreement?

It's got nothing to do with you.

lulu650

Uncertain wrote: »

.... In some circumstances, a specially trained and insured trade union official can advise the employee and provide the necessary certificate - although I wouldn't recommend it!

The OP has already said that the CA has been sorted out by the union, so, presumably, the legal adviser is employed by the union, ie the national/regional official.

Why wouldn't you recommend it out of curiousity? Union legal advisers have direct access to solicitors if there is anything needing clarifying.

marybelle01

Uncertain wrote: »

In some circumstances, a specially trained and insured trade union official can advise the employee and provide the necessary certificate - although I wouldn't recommend it!

I'd recommend it more than a solicitor picked out of the yellow pages who is just going through the motions to get his fee because he knows you don't have the money for his bills to fight a case, even if you had one. The union have no interest in whether you can pay a bill or not, so at least their advice is likely to be based on your best interests and not the interests of lining their pockets.

ohreally

Op, ensure you receive unbiased, independant advice before agreeing to the CA.


In signing a CA, you are barred from bringing or continuing with a claim in relation to the issues specified. Compromised claims normally include both present and future claims, if these are, or could have been, contemplated at the time of the agreement (Byrnell v BT EAT/0383).
Individuals who secure compensation under the terms of a compromise agreement should be advised to observe any confidentiality clause — a breach of which is one of the easiest ways in which employers can avoid making payments. Also, watch out for clauses within a compromise agreement that involve an employee warranting that s/he has not breached any term of his employment contract.

In the case of Hinton v University of East London [2005] EWCA Civ 532 ([2005] IRLR 552), the Court of Appeal said it was not enough for an agreement to refer to “all claims” in order to compromise any claim the employee might have.

moneypudden

Thanks all for your replies. I can't go into specific details of my circumstances for obvious reasons, but as lulu 650 suggests my union is indeed my advisor, and they've been very good thus far.

I've spent most of this weekend going through my proposed reference with a fine toothcomb, so this Forum has been very helpful there and i've just given my comments back to my union negotiator.

For Sambucus - the reason i'm here is because another perspective is always a good thing to consider, as people on MSE Forums are always pretty helpful. Nobody gets it right 100% of the time, however good the 'expert' or 'professional' advisor might be!