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Considering Early Retirement - What am I missing ? - Page 3

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Considering Early Retirement - What am I missing ?

40 replies 5.8K views


  • nigelbbnigelbb Forumite
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    Companies are not in the business of paying people that don't want to be there. Especially when they're actively trying to cut costs. Its mutually beneficial you don't work the full 12 months and given that you're retiring I'd think it extremely likely that you can come to some sort of an agreement.
    Given that extraordinarily long contractual notice period one tactic would be to underperform so badly that you get fired with 12 months pay in lieu of notice.
  • AnotherJoeAnotherJoe Forumite
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    uk03878 wrote: »
    The one years notice in the financial services industry has been used before and confirmed by arbitration
    However, the contract has to be fair - they have to give you 12 months notice for them to fire you as well. It can't be loaded one way or the other.
    If you are on 12 months notice and they are allowed 1 months notice - then that is unfair and probably unenforceable

    IANAL but i am sure that must be in the context of someone who wishes to work elsewhere, and most likely at the same type of job. If you walk out, what can they do ? Insist he goes back to work? Plenty of ways that would become a nightmare for them and unwilling employee whose every but of work would need to be double checked for errors he might make.

    In any case them arbitrarily reducing his salary by 30% then insisting he works 12 months (if they would) does account to slavery, would he be forced to work there a year if they reduced it to 1p a week? So it doesn't add up they can force him to work there.

    And there are many other things OP can do. Obviously he's stressed so he's going to take time out, have sick days, leave mid way through the day, he'll stop work dead at 5pm even if mid way through a telephone call or a meeting.

    I would say stopping going to work and claiming constructive dismissal with a NWNF lawyer is the next step and let them argue it out whilst he cycles and tarts up his man cave. OP is oppressed and is so far under the jackboot he doesnt realise it.

    OP, wake up and smell the coffee
  • crv1963crv1963 Forumite
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    OP- I agree with others posts.

    You seem to be conditioned to going to work in your current role, are clearly undervalued with the 30%+ wage cut and the long notice period as a hangover from your previous contract.

    I'd suggest that 40x your annual salary is enough to say you have the financial independence to leave.

    If you don't want to give notice straight away take some time off- annual leave, sick leave a sabbatical, whatever form you like and have a good hard think. List the pros and cons of the decision, work out exactly your financial needs versus the impact on your health. Mental and physical health are certainly intertwined closely, so decide how much longer you can tolerate the current situation and make your move.

    There are ways round the notice period- you could discuss shortening it, going immediately or if they won't agree seek GP signing you off with work related stress.

    Do you have someone close to you that you can discuss your situation with?
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
  • nigelbbnigelbb Forumite
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    Surely a salary reduction of 30+% amounts to constructive dismissal?
  • MK62MK62 Forumite
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    Depends how the "package" is structured......if it's purely "salary", then they are probably already in breach of contract, but if it's made up from base salary and a plethora of variable bonuses/commissions etc, then they may well have some wiggle room.
  • edited 18 June 2019 at 11:21AM
    CookieMonsterCookieMonster Forumite
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    edited 18 June 2019 at 11:21AM
    Was the reduction in salary carried out in line with the relevant section(s) in your terms and conditions?
    Were you not protected by TUPE - transfer of undertaking and protection of earnings?

    If your contract and terms and conditions have been breached in any way then it makes the restrictive covenant (and other items) less enforceable.
    Restrictive covenants are common but they can be over the top - as your covenant seems to be. Are you very high up in the company? My restrictive covenant is 6 months, 12 months is 'fair enough' but 2 years is too much (in my opinion).

    I'd be out the door too with the salary reduction and pension contribution reduction.
  • atushatush Forumite
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    MK62 wrote: »
    Depends how the "package" is structured......if it's purely "salary", then they are probably already in breach of contract, but if it's made up from base salary and a plethora of variable bonuses/commissions etc, then they may well have some wiggle room.

    if they truly cut his salary and are in breach of his original contract, surely he doesnt have to have the long notice period?
  • edited 18 June 2019 at 2:40PM
    JoeEnglandJoeEngland Forumite
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    edited 18 June 2019 at 2:40PM
    SB1961 wrote: »
    Very many thanks for the various replies.

    Commenting on some of the points mentioned:

    - Unfortunately redundancy is not an option for a number of reasons

    - If I resign I have 12 months notice and working this long a notice period I would not look forward to

    - I am unable to work elsewhere in the same type of job as I have a two year non compete contract

    - What would I do in retirement; DIY, gardening, tidying up my Man Cave, walking the dog, cycling, loose weight and get fit, probably some more charity work which I have done for 25 years, more motoring trips which I enjoy, travelling and possibly in a year or so look for a part time job just to ensure I keep myself occupied but not in the finance sector !

    Since my post I have asked my new employer if I can reduce my working week from 5 to 4 days. I am waiting a response, however I am thinking that even if they say yes, that trying to do 5 days work in 4 days, which is probably what will happen, will be more stressful and won't have the desired plan of being less days work = less stressful !

    It does seem to stack up financially and seems viable and certainly sensible from a health perspective to consider early retirement but not an easy decision.

    Why would you need a PT job to keep yourself occupied?
  • scaredofdebtscaredofdebt Forumite
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    I'd get my doctor to sign me off sick (stress etc) for a year, cheeky beggars.
    Make £2018 in 2018 Challenge - Total to date £2,108
  • VDOT47VDOT47 Forumite
    277 posts
    TUPE only applies to business sales where the purchaser buys the assets of the selling business- but it does prevent the buyer from arbitrarily making your terms of employment worse.

    Even if the business sale were a share sale, and TUPE therefore doesn’t apply, reducing salary for no reason would still appear to be a repudiatory breach of contract by the company which could allow the OP to rescind the contract (and potentially claim constructive dismissal). It would also likely make the restrictive covenants unenforceable.

    OP should take some specialist advice from an employment solicitor.
    Original Mortgage (Feb '17) £269,995
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