Looking for advice on a compromise agreement

lionyard

I've been given a compromise agreement to sign that will make me unemployed. The company has offered me 1 month's gratis pay (plus the one month standard payment in lieu). I have a couple of questions for the forum:

• Is the offer of one month's pay stingy or standard?

• If I sign the compromise agreement (which effectively means we both agree to part company but no reason is given for terminiation) will I be eligible to claim on my unemployment insurance? I'm sunk if I can't get them to pay out.

In case it's relevant, I was put on a final written warning after poor performance in the job, and being generally fed up with the whole situation I pushed for a compromise agreement so I could get out. The stress has been horrible and I'm currently signed off work by the doctor. I've been given 3 days to sign, after that I guess the offer will be withdrawn and I'll be expected to return to work.

Sambucus_Nigra

You should be getting independent advice on this - paid for by the company.

Don't sign it until you have had that legal advice!

Janey1968

I signed one of these a few years back.

The company agreed to up to £100 for an independent solicitor to look through it and make sure nothing was "untoward".
In doing so he argued my case that actually, I should be getting alot more than 1 months pay. (had been there for 5 years)
The Company gave me 5 days to agree to thier terms and sign
In the end we settled for 6 months pay, untaxed and an agreed reference (which I wrote!)
I was able to sign on immediatly whilst I looked for another job.

When I first had the agreement, my initial knee jerk reaction was to sign and go. Only in seeing a professional was I made aware of my barganing power.

I hope this helps.

Can I just add that at the time I thought my world had come to an end now looking back it was the one of the best things that ever happend to me. I gave me money in the bank and time to look for a job I really wanted.
Every cloud and all that!

Ewarwoowar2

lionyard wrote: »

I've been given a compromise agreement to sign that will make me unemployed. The company has offered me 1 month's gratis pay (plus the one month standard payment in lieu). I have a couple of questions for the forum:

• Is the offer of one month's pay stingy or standard?

• If I sign the compromise agreement (which effectively means we both agree to part company but no reason is given for terminiation) will I be eligible to claim on my unemployment insurance? I'm sunk if I can't get them to pay out.

In case it's relevant, I was put on a final written warning after poor performance in the job, and being generally fed up with the whole situation I pushed for a compromise agreement so I could get out. The stress has been horrible and I'm currently signed off work by the doctor. I've been given 3 days to sign, after that I guess the offer will be withdrawn and I'll be expected to return to work.

Find a solicitor who's local to you and specialises in employment law. Ask if they will give you an hour's free legal advice and explain you've been given a compromise agreement.

The agreement should allow some money towards legal advice. A decent solicitor won't charge you for the servi

Smi1er

lionyard wrote: »

If I sign the compromise agreement (which effectively means we both agree to part company but no reason is given for terminiation) will I be eligible to claim on my unemployment insurance? I'm sunk if I can't get them to pay out.

Sign with the current wording and you're sunk.

Read your Unemployment Insurance Policy document and you will find that leaving in this way excludes you from payment under your policy.

You really need to speak to an employment lawyer (with your firm paying the bill) to get the wording you require to make a sucessful claim on your insurance

lionyard

Thanks to everyone who took the time to reply to my message. My employment lawyer has suggested we insert the following lines into my employer's standard CA. He thinks this will cover things as regards my insurance:

“The Employer is terminating the Employee’s employment”.

and

“The Employer will, immediately following the signing of this Agreement by both parties, provide the Employee with a letter dismissing the Employee from his employment or confirming his dismissal as at the Termination Date”.

Hopefully this will satisfy my unemployment insurance requirements.