Settlement Agreement/Performance Improvement

Tan81

Hello, I've been undergoing an informal performance improvement plan at work and today, despite some improvement, my manager has informed me it isn't sufficient and we will be entering stage 1 of a formal plan (which could ultimately lead to dismissal).
She was at great pains to let me know they wanted this to work but frankly the signs aren't encouraging. I have tried to make this work but now I'm just not sure I'm capable of delivering what they require, the expectations just seem impossibly high (100% mistake-free in some areas).
As an optimist I'd like to stay, fight through it and prove them wrong but I'm starting to think the stress of doing this would ruin my life and health (at least for the next few months). This leads me to leaving as soon as possible, either through searching for and finding a new job whilst keeping this one or asking for a settlement agreement and devoting myself to a job search full-time. Just to be clear no settlement has been offered by my employer so it would have to be inititated by me with no guarantee they would be amenable.
Several months wages, immediate departure from your job and a positive reference sound too good to be true, is there a catch with such a thing? Can prospective employers tell when you have reached such an agreement and do they treat it as an immediate red flag?

Undervalued

Tan81 wrote: »

Several months wages, immediate departure from your job and a positive reference sound too good to be true, is there a catch with such a thing? Can prospective employers tell when you have reached such an agreement and do they treat it as an immediate red flag?

It is quite difficult to hide.

The normal wording of such an agreement requires both parties to keep it confidential. Also an agreed reference, whilst good in some ways, means the old employer cannot respond to any specific questions the new prospective employer may ask which does rather telegraph "settlement / compromise agreement".

However, what is the alternative?

Tan81

It's a big stress. From feedback about the plan it seems they end in failure more often than not and many are entered into to cover backs rather than help the 'struggling' employee. However, my boss has been at pains to re-assure me that they want to help and I imagine pursuing this settlement route would put the kiss of death on any prospect of salvaging my future if it actually exists.
I'm not sure what sort of reference I would get from my current boss, probably one that wouldn't stack up well against other candidates, and I'm exhausted and only likely to get more so as we move through the plan so a chance to recover and then devote all energies to a good, thorough job hunt is appealing!

Undervalued

Tan81 wrote: »

It's a big stress. From feedback about the plan it seems they end in failure more often than not and many are entered into to cover backs rather than help the 'struggling' employee. However, my boss has been at pains to re-assure me that they want to help and I imagine pursuing this settlement route would put the kiss of death on any prospect of salvaging my future if it actually exists.
I'm not sure what sort of reference I would get from my current boss, probably one that wouldn't stack up well against other candidates, and I'm exhausted and only likely to get more so as we move through the plan so a chance to recover and then devote all energies to a good, thorough job hunt is appealing!

Well that depends on how strong a negotiating position you are in and / or how keen they are to settle! Some people are virtually able to write their own reference in these circumstances although the firm would be unwise to agree to say anything that was provably untrue.

Also, depending on the industry, a wildly OTT gushing reference might as well have settlement agreement stamped on it!

tomtontom

How long have you worked there? On the information given I can't see any reason why they would offer you a settlement. What is your notice period?

Tan81

The area is very niche and one of our team is due to leave in the next month (finding cover is not going well) so I am wondering whether offering them the chance to get rid of me and bring in a replacement whilst we are not yet down to the bare bones might work rather than potentially leaving them with just one person in the team a month down the track.

Tan81

Been there 3 years, 1 month notice period.

getmore4less

Why is it so hard to not make errors?