Settlement Advice

dietcokepirate

So it would be great to get some opinions on the pickle I have found myself in… I still feel rather blindsided by it all!

Advice RE employment/termination

I am based in England and have worked for a (large and well-known) company for 4.5 years on a permanent salaried contract.

I received an invitation for a 'catch-up' meeting last Tuesday with the head of my team for later on that day. When the meeting started I saw that someone from HR was also there. I was told that my contract was being terminated, and that my employment with the company would be ending - effective immediately. I asked if there was any way of appealing this, and they said that there wasn't and that the decision had been made. I had no one with me for support, and there was no forewarning of the nature of the meeting.

They listed a few 'reasons' which all seemed terribly weak - it was as if they'd tried to cobble something together last minute; but the general gist was that they felt I ‘didn’t have the skills required’ to carry out my role. They told me that I was being offered an enhanced termination package: pay for my notice period of 3 months / pro-rata holiday accrued (as legally owed and with statutory deductions), a tax-free settlement figure (16 weeks), legal fees (subject to using the ‘independent’ solicitor nominated by them which seems paradoxical), and outplacement support. As employees are due to receive their bonuses in July, I asked if I was still able to receive that too, but they said no.

As mentioned, there had been nothing to suggest this meeting was coming.. The most recent work I presented had been very well received, and in the 4.5 years I have worked for the business there has never been any indication that my performance was lacking or that improvement was needed (I have never received a poor performance review or respective rating, and had a good rapport with all my colleagues).

The meeting ended and I was emailed relevant documents; one of the letters sent stated that the offer was open for acceptance until close of business last week (28th - after which point it would lapse) and that it was conditional on being signed by the end of this week (5th), although they did say that that could be extended. This made me a bit nervous; last week I had replied just to say that they can send a draft the full settlement proposal document for review, and provided them with contact details for a solicitor who specialises in settlements. At present, this still hasn’t been sent! I have also asked x3 times to be emailed the reasons they listed as their justification for terminating my contract; I told them that although I remember what they were, I would like them in writing for my reference. Again, I am still waiting on these.

The monetary amount they've offered is okay objectively (I think?) but the situation feels so iffy and I am not happy with the optics of it all. I know these things are ‘just business’ to the company, but it all felt terribly personal; if they’d made me redundant it would have stung less. Because the termination was immediate, my work account was deactivated within 24 hours after the meeting took place; this meant that I had limited time to collate work ahead of losing access to the relevant systems, and this work is vital for me to be able to accurately update my portfolio for job applications. I have since sent all work devices back to them, as requested in their correspondence.

I rang ACAS and they explained that I am within my right to negotiate the settlement agreement, and that they also feel that there are red flags regarding the way in which the business appear to have conducted themselves.

Based on the information provided, does anyone have any advice here? Has anyone been in the same situation before? Do you think it's fair that I'd like to at least negotiate the settlement to include my bonus and an accurate/positive reference? (I wouldn't want this termination to be made known of or to damage my reputation). Or could I potentially consider more serious avenues? I’m honestly still so dumbfounded! I’ve unfortunately seen this happen to other people in my industry, but this surely can’t be the correct way to use settlement agreements.. it feels like one is pressured to accept ‘hush money’ to agree to an otherwise unethical exit..

Apologies for the essay and thanks in advance for any help or advice!

GingerTim

This is of no help to the OP, but to anyone else invited to a 'catch up' only to find an HR person present as well, refuse to continue with the meeting and ask for it to be rescheduled for when you have someone present (ideally your union rep) and ask what the meeting will be about. Don't be bounced into proceeding.

To the OP - hope you get this sorted with the minimum further stress.

DullGreyGuy

A solicitor has a legal obligation to their client no matter who is paying for their time, they could lose their licence to call themselves a solicitor were they to be influenced by their paymaster. 

What have they said would be the response to any future reference request?

What's the job market like in your area/industry? In my world the market is buoyant and salaries are fairly good... only once has it taken me more than a month to find a new job and right now it'd be at least on equal terms so the 16 weeks additional payment plus pay in lieu of notice would be cash in the bank.

dietcokepirate

Hi there! Annoyingly it’s not letting me reply to your comment, but I work in print/fashion design; it’s a very competitive industry and not all jobs pay particularly well. One is ultimately at the mercy of whatever roles happen to be available at the time, and hoping that any respective employer offers adequate pay (often salary is not disclosed when advertised). I am currently job hunting and putting out feelers within my network, of course, so fingers crossed! 

They haven’t said anything about references yet but I can’t imagine it would be an issue; whereas I feel they will be funny about the bonus.

elsien

How hard do you want to fight this? You do have employment rights which they appear to be ignoring in their attempts to bounce you out.
I think you need to be careful on the reference front and negotiate what you want to yours to include. If yours is a companyindustry which normally give a fuller reference and yours only gives dates of employment (for example) that could be a red flag for future employers. 

Marcon

dietcokepirate said:

Hi there! Annoyingly it’s not letting me reply to your comment, but I work in print/fashion design; it’s a very competitive industry and not all jobs pay particularly well. One is ultimately at the mercy of whatever roles happen to be available at the time, and hoping that any respective employer offers adequate pay (often salary is not disclosed when advertised). I am currently job hunting and putting out feelers within my network, of course, so fingers crossed! 

They haven’t said anything about references yet but I can’t imagine it would be an issue; whereas I feel they will be funny about the bonus.

I'm not surprised you are upset by all this - anyone would be, if it's been handled as badly as you've suggested.

Bonuses are always a bone of contention when someone is on the way out. They are almost invariably discretionary and often only payable if you are in the employment of the company/have not given or received notice on the date they are due for payment. This is usually worded in a way which means even if you are working your notice, or are being given pay in lieu, you don't meet the criteria.

Do you have any realistic idea of what your bonus might have been had you stayed? If it's a couple of hundred pounds, that's one thing; on the other hand, if it's a hefty %age of your usual salary, it's quite another. Don't get into a straight fight on it, but try to negotiate a package which allows for the fact you aren't going to get the bonus.

Talk to your solicitor. The fact it's someone nominated by your employer isn't uncommon - many large employers use such 'panel' solicitors because they get a discounted rate. It doesn't impact on the advice you will get. Solicitors are officers of the court and are required to act to high professional standards - and the vast majority do.

gm0

I have been through exactly this process.  A long time ago so exact rules may have drifted now. 

- The solicitor paid for by employer to describe the agreement to you as a lay person in terms of legals is pretty much a compulsory requirement on UK employers.  And they are paying a fixed fee for a specific job.
Not general open ended legal help.  Job is ONLY to explain the compromise agreement document and its implications to you.  Tick the box.  No tribunal based on that not happening.  All big employers do it routinely.  Small boring little earner for some lawyers. 

Be alert on any attempt at a non-compete constraint/gardening leave for "critical current knowledge" of this year's strategy and plan vs employment at competitors (unless compensated to sit at home).  Needed for a few. But should not be used and is not enforceable anyway for many others.  But can expect a "good leaver" setup - you don't slag them off or steal IP.  And you get the money and a normal reference to policy.  And anything else they throw in.

Just before bonus time is mean spirited but context a financial need to make a workforce adjustment via managed attrition - not super surprising and the bonus pool may not be that plump.  Delaying the process by haggling might get you in scope for bonus month end.  But they might still decide to use their discretion about your personal bonus % and set it to 0 anyway. As most bonuses are entirely discretionary and not contractual this may be a lost cause either way.  They are likely assuming they are exiting people prior and can zero that line item.

Delaying the process might get a month or two more salary.  Some people (legitimately not fraudulently) become ill and delay matters and/or refuse to sign before heading off sick. 

At which point the employer needs to use one of the other dismissal mechanisms.  Redundancy (using a pool), Trawling your history for anything they can say is misconduct.  Or capability and do the actual performance management process to a standard defensible at tribunal at minimum.  Most of these require you to be well enough to participate. But they can withdraw the compromise offer and if forced to do it the "hard" way - just pay statutory redundancy (some months later).  Or just PILON and accrued leave. 

They don't have to give you this later.  This is the go quietly offer.  And it can be signed.  Or not.  And it then may be withdrawn and a different route to the same destination (you leaving) identified.

The "compromise agreement route" has the great advantage to the employer precisely because of what it is not:

1) redundancy - no roles/reorg, no at risk group, no broader morale hit and all the work across the pool.  The horror that is VR and key skills walking and known low performers/quiet quitters clinging on for grim death.  For 5% to 15% this is way better. Just no.

2) job role capability dismissal - no need to do "improvement plans" and a whole series of steps prior nor for it to be "justified" to any great extent by proving poor relative or absolute performance.  Can be super difficult in services with flexible project work vs more fixed JDs and roles.

3) long term health issues leading to capability (ability to attend at all and perform role) dismissal

4) misconduct dismissal "for cause" / behaviour of various kinds

Essentially you are targeted for a compromise agreement and invited to "resign" in return for the money offered. 
The money offered will (usually) be a bit more than would be available as the minimum legal amount for a statutory redundancy or other exit route. 

In many larger organisations especially services type firms - this is just one more tool in the box to do workforce adjustment.  The criteria can be last year's sales numbers, a dart thrown at the picture board - basically we want 10% out.  Pick some globally or instruct countries to do it locally to a target payroll budget for next quarter.
The criteria cannot be protected characteristics but amost nobody is that stupid.  Having a protected characteristic doesn't provide protection from being picked.  On suitably abstracted and vague criteria and metrics.

Doesn't say FAIR on the tin.  Fair to whom and on what basis - this year, 3 years, whole of employment, future potential etc. etc.

In larger organisations especially international - metrics/spreadsheets and financial reports where you are just a number with metrics and outcomes and can be sorted for cost against similar people and roles - make the process of deciding who - globally - highly impersonal. 

Undervalued

GingerTim said:

This is of no help to the OP, but to anyone else invited to a 'catch up' only to find an HR person present as well, refuse to continue with the meeting and ask for it to be rescheduled for when you have someone present (ideally your union rep) and ask what the meeting will be about. Don't be bounced into proceeding.

To the OP - hope you get this sorted with the minimum further stress.

An employee only has a legal right to be accompanied (by another employee of their choice or an accredited trades union rep) at a formal disciplinary or grievance meeting. Whilst some employers may choose to allow it at other meetings they don't have to. 

Refusing to participate in any other type of meeting could be a disciplinary matter in itself. 

dietcokepirate

Hi everyone and thank you for all your replies!

Extra info:

Bonus: based on my last performance review/rating, I was to receive a bonus of 20% of my salary, with 2/3 due to be paid with our pay in early July, and the other 1/3 to be paid in July 2027 in the form of shares (if still employed with the company then). With 40% tax applied, the two-thirds I was due to receive this month equates to just over £4900, so I'm keen to still receive this.
Reference: the manager I had for the majority of my employment is currently on mat leave and I have her contact details down for reference purposes (I had her mat-cover as my manager for the last 8 weeks). Once my solicitor is in receipt on the draft I will find out how one negotiates references into these things; employers may just contact my manager - but should they contact the company directly then it would be nice to have some assurance.

Legal route: When I spoke to ACAS they said that there seemed to be a lot of red flags here, but taking this further does seem super stressful. To be honest, if money was no object then I'd probably consider that avenue just on principle alone, but alas - that's not the case. However, I'm more inclined to sign this settlement if my bonus is included, so hopefully there is room for negotiation...

JennyDavis

Keep detailed records of all communications with your employer, including emails, meeting notes, and requests for written explanations. This documentation can be crucial if you decide to challenge the termination or negotiate further. Keep in mind that these guys  https://ukwritings.com/reviews are always looking for people who can write. Maybe that will be something for you.

El_Torro

I agree that you've been treated very badly here, your employer does not seem to have honoured its legal commitments. 

Having said that an offer of 16 weeks pay plus your 3 months notice period does seem relatively generous. That's over 3 weeks pay for every year you've worked. You'll know better than us how quickly you'll find another job but you might find yourself quids in, even taking into account any time spent unemployed. 

If you're finding the situation so far stressful (you say you are) then I'd be tempted to just call it a day and accept the offer. You might get a lot more by taking the situation further, but at what mental cost to you? Taking this further might also have you ending up with less than what you've been offered.

People accepting the first offer made by a badly behaving employer leads to companies not learning and continuing to behave in an unprofessional / illegal way. Still, it's you against a large company here, taking this further will be an uphill battle. Ultimately you need to do what's best for you and from what you've told us I'd say that it's time to draw a line under it and move on to the next opportunity. 

EDIT: Forgot to mention: I think you have a strong case to negotiate further, so definitely worth considering. Tread carefully though, you don't want them to make you a worse offer than what you've already had.