Settlement Agreement Advice_Unfair Dismissal Case?

I will try to keep this as short and relevant as possible.

I have been employed by a small, but highly profitable company for the past 3 years and 4 months. Since the birth of my son 2½ years ago, my employer has made progressive steps to diminish my role and terminate my employment.

In an informal, “off the record” chat with the HR Manager in January 2017, I was advised that there was not enough work for me in my role and I was strongly recommended to seek other job opportunities. Most likely to save the company the expense of having to make me redundant! Just under two months later, I was officially told that my position was being made redundant and that I could either accept redundancy, or have my working week reduced from five days to four. I accepted the part-time offer instead of redundancy.

Over the coming months, aspects of my role and responsibilities, tasks that are written in my job description, were outsourced to external contractors.

In the final month before Christmas 2017, I was subjected to an unfair “Capability Review” and a separately raised disciplinary meeting for lateness which resulted in a formal verbal warning. Did I mention that I think the company have been trying to get rid of me?! The capability review was “paused” by the HR manager, as my line manager had eventually described my performance as “perfect”. My time keeping had never been a cause for concern once, not a single incident of lateness following my verbal warning at the end of 2017.

Last week I was invited to an “informal chat without prejudice” (in response to my question of whether I would need to be accompanied by a colleague) with the same HR manager as described earlier and the deputy director. I was politely told that they felt a solution could not be concluded for my “unreliability” relating to days taken off as unpaid dependent leave, to care for my sick child with no other immediate childcare opportunities available to me. They presented a pre-printed/arranged Settlement Agreement and asked me if I would mutually agree to leave the company (a “gentlemen’s agreement” apparently?). It was explained that acceptance of the settlement would void all of my grievances with the company and I would not be able to later take my case to a “no win, no fee” solicitor. I was placed on gardening leave with immediate effect for the remainder of my notice period (1 month) and suggested to “enjoy the sunshine”?!

If you have read this far, then thank you for having taken the time to do so! I appreciate that there maybe differing opinions on this and that it is perhaps difficult to offer a solid, definitive solution. However, anyone who is able to offer some experience, suggestion or advice, I would be most grateful.

Thank you

Comments

  • Ozzuk
    Ozzuk Posts: 1,884 Forumite
    First Anniversary First Post
    Have you signed it? I believe any settlement agreement is only binding if you've taken independent advice, which they should contribute towards. If you've taken advice, and signed it, then thats it, you can't take further action.
  • Ozzuk wrote: »
    Have you signed it? I believe any settlement agreement is only binding if you've taken independent advice, which they should contribute towards. If you've taken advice, and signed it, then thats it, you can't take further action.

    No, I definitely haven't signed or mutually agreed to anything. You're right, I have just contacted an employment solicitor to review the settlement agreement, which is what makes it legally binding. The solicitor will advise whether it should be signed or further negotiated. I just wondered if anyone else had experienced something similar? I have seen other cases on here of settlement agreements being rejected numerous times before final agreement.
  • Ozzuk
    Ozzuk Posts: 1,884 Forumite
    First Anniversary First Post
    Usually but not always, a settlement agreement is an enhanced offer - so better than redundancy, this is because you are giving away some of your rights. It does depend how strong your case is, your solicitor will likely only comment on the agreement and not the overall situation (unless you pay more!). Another benefit over redundancy I believe as soon as you've signed you're usually free to look for work without risking the company pulling the offer. I'd be looking for this clause in your agreement.

    Just to add, be careful if you keep going back to the solicitor, I believe the employer only has to make a reasonable contribution, from what I've seen that is usually £250-£350, so not much more than an hour or two. If you keep getting advice you may find yourself out of pocket.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    What's the offer?

    You can drag this out beyond 4 weeks.


    If you want to work again you need to sort out proper childcare.
  • Ozzuk wrote: »
    Usually but not always, a settlement agreement is an enhanced offer - so better than redundancy, this is because you are giving away some of your rights. It does depend how strong your case is, your solicitor will likely only comment on the agreement and not the overall situation (unless you pay more!). Another benefit over redundancy I believe as soon as you've signed you're usually free to look for work without risking the company pulling the offer. I'd be looking for this clause in your agreement.

    Just to add, be careful if you keep going back to the solicitor, I believe the employer only has to make a reasonable contribution, from what I've seen that is usually £250-£350, so not much more than an hour or two. If you keep getting advice you may find yourself out of pocket.

    My apologies for such a delayed response. From what I understand, a settlement agreement means that you are giving away all of your rights? You're absolutely right, the solicitor did only comment on the agreement and not the overall picture, which leaves me wondering if I am making the right decision? The settlement still has to be reviewed and negotiated by a solicitor anyway and I guess that I am under no obligation to sign it if I wish to pursue an unfair dismissal/discrimination case. Thank you very much for your caution of going back to the solicitor for advice. Again, you are absolutely right, it would seem somewhat counter-productive to negotiate a settlement with my employer whilst spending most of the negotiated money on the solicitor?!

    It's such a tough call, because I feel that I could potentially gain more from my employer by successfully winning a tribunal case against them, but that would mean actually winning the case. I'm not experienced enough to know how strong my case could be. I have a feeling that it's pretty strong with some shady and underhand behaviour on the part of my employer. Mostly outsourcing my work to external contractors to 'force' my role to gradually become redundant and dismissing me on the grounds of having to take unpaid dependant leave.
  • Daddy_Digital
    Daddy_Digital Posts: 4 Newbie
    edited 28 April 2018 at 7:43AM
    What's the offer?

    You can drag this out beyond 4 weeks.


    If you want to work again you need to sort out proper childcare.

    Thank you for your reply.

    So the offer is pretty much:
    • 1 months notice pay (from the termination date at the end of my garden leave)
    • Redundancy equivelant to 1 months pay
    • £1000 for loss of position
    • A very basic written reference (which needs to be re-written!)

    As I mentioned in the post above, I'm not sure how strong a case I have to be able to take the employer to an employment tribunal. I guess the settlement agreement is much easier and potentially far more stress free than the tribunal. I just want to figure out what the best course of action is (financially) for my family.

    The childcare comment is pretty much stating the obvious.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    Offer is looking quite good,

    A dismissal would be nothing
    statutory redundancy would be 3 weeks at a cap of £489pw

    You have the equivalent of about 7 weeks after tax on the pilon + £1k


    They have messed up the redundancy opportunity and not dealing with the excessive dependence absence.

    Their fall back is they start again and get it right this time, do you want to carry on working there.

    Trying to get head round the time line and level of lateness and dependant leave to see if it would be classed as excessive and the chances of winning a case.

    Start around Dec/Jan 15
    Birth Oct/Nov 15
    Dec 17 review over lateness

    how much lateness had their been up to then you say none after?
    How much dependant leave over the 2.5 years and in particular since the Dec review?
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards