Settlement for Unfair Dismissal

FBaby

I'm confused. If the issue is one of redundancy, why put you on gardening leave where they are still paying you?

Sounds to me that once HR got involved, they realised that they were at risk of being challenged so are playing the redundancy card now with a 'compensation bonus' to keep you quiet.

Still, if what they want is to get rid of you, better to go with a package then going through the disciplinary process where you could end up with only your notice period paid.

ShakeItOff

Notice pay and holiday pay will be taxable. When you get the settlement agreement, check the compensation clause to make sure it is tax free. I would also suggest getting a pre-agreed reference as part of the settlement, and also check how much they will contribute towards your legal fees.

Andypandyboy

Your employer should pay the cost of having the agreement checked by a lawyer of your choice.

I would push for more than they have offered, that is their starting point, they will expect you to negotiate. They have offered this because they know they are in the wrong, so use that to your advantage, don't let the "coffee cup" chat with HR lull you into accepting their first offer, they are playing "softly softly " now in an attempt at damage limitation.

Teenes

Thanks for all replies, it's great to have the support

So the details came through, I'll give you the exact figures so you can see

One month notice @£3500
8 days accrued holiday @ £1108
2 weeks payment to cover my July holiday where I won't be able to work £1384
3 weeks statutory redundancy pay £1140

All is subject to tax and N.I apart from the SRP

They have offered to add together the NET equivalent of the taxable payments and have offered £3500 plus the SRP, total of £4940 as a severance payment at the end of June

To be honest I was hoping for more as my garden leave would end on 29 June, I'm on holiday from 13-23 July so realistically nobody is going to employ me until after then. This payment is just 2 months basic pay

Any suggestions for negotiation?

easilydistracted

I would suggest that it's very sensible to get independent legal advice about this, even if it's just a few hours, as has been advised by other posters. As mentioned if this is a compromise agreement the company should fund this. You need to ask what it is they are offering you.

Some of the key issues for you are not just money but a job in the future. You need to have an agreed reference and whether it will say dismissed or made redundant on it.

I personally think the financial offer is very low without a job to go to but part of it depends on your situation and it's not my line of work.

Are you sure there is no scope to return whilst you look for other work? I would not stay long but it is easier to get a job with a job, such as pursuing the previous offer you had and HR will be all over them. You have to work out if they would manage you out or not though.

AJ1982

Teenes wrote: »

Any suggestions for negotiation?

Yes, assuming this is a compromise agrrement...

Have a solicitor, (you need legal advice for the agreement to valid anyway) pick through the bones of your "Contract of Employment" "Agreement Itself" and the process / way you were treated.

For unfair / out of process dismissal, I would expect 3 months payment (Tax free upto 30k) in replacement of notice period, in addition to any monies already owed or accrued. (Expenses, overtime, on call, hols etc)

It has been known for a solicitor to find a gaping hole between the contract of employment and the way you were treated, best seek legal advice once you receive the agreement.

Undervalued

AJ1982 wrote: »

Yes, assuming this is a compromise agrrement...

Have a solicitor, (you need legal advice for the agreement to valid anyway) pick through the bones of your "Contract of Employment" "Agreement Itself" and the process / way you were treated.

For unfair / out of process dismissal, I would expect 3 months payment (Tax free upto 30k) in replacement of notice period, in addition to any monies already owed or accrued. (Expenses, overtime, on call, hols etc)

It has been known for a solicitor to find a gaping hole between the contract of employment and the way you were treated, best seek legal advice once you receive the agreement.

Indeed but the OP will need to be prepared to pay the solicitor himself to do this. The amount that is normally paid by the company will almost certainly only cover the absolute minimum needed to make the agreement legal. They are unlikely to want to pay for somebody to argue against them.

I say normally as it is not actually obligatory for the employer to pay anything towards the employee's legal fees even though the law requires that they be advised by a solicitor or specially trained trades union rep.

SeduLOUs

It does sound to me that the bulk of what you have been offered is what you would have got anyway had the redundancy process been followed properly, except the consultation period would have taken some time so you'd have had more pay/holidays accrued whilst that was happening.

It depends how confident you are about finding another job and whether you just want to draw a line under it and move on, but I think as a minimum you do need the confirmation that a reference will say 'redundant' as opposed to 'dismissed'.

If you're happy with that then great, but if not it's time to take some proper advice now - I do think you should be getting more under the circumstances.