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Do I approach them on a compromise agreement? Who knows about CAs?

(15 Posts)
DaddyCool Fri 19-Jun-09 10:27:41

I think I need a compromise agreement with my employer. Is it normally the case that the employee approaches the employer for a compromise agreement and does the employee (or a solicitor on their behalf) actually draft something up and propose it or do you just approach your employer with the general terms you would like and get them to draft it up?

I also want to put in that I'll work for them for a set period of time but after that, I want xxx as payment on departure. Is that normally acceptable?

flowerybeanbag Fri 19-Jun-09 10:45:30

What makes you think you need one? A compromise agreement is usually proposed by the employer, usually to avoid a tribunal claim or potential claim, or similar situation. It would be drawn up by the employer or more usually their solicitor or adviser, and then checked by the employee's solicitor or adviser.

Do you want to leave your job? Just trying to understand what the incentive would be for your employer to pay you any money for doing so?

And no it would not normally be acceptable to either party to carry on working, employment would normally be terminated immediately, but again it depends on the circumstances.

DaddyCool Fri 19-Jun-09 11:04:15

I want a compromise agreement to avoid me having to take a constructive dismissal or tribunal case afterwards. I thought with a CA, I'd be able to leave after they need me for the next couple months while I help merge the business into another one and then walk away with a good chunk.

They're not following the process properly and stupidly, they've kept me in meeting where they've actually discussed that they will suffer any payouts etc, because the timeline is so tight, they can't follow proper HR procedure.

flowerybeanbag Fri 19-Jun-09 11:09:54

So you think you have a constructive dismissal case, ie you feel you have no option but to leave because of something they've done, or similar?

When you say they are not following the process properly, what process, what are they doing that they are not following a process for? Is it a change of terms and conditions or something that you object to?

Sorry for all the questions but a compromise agreement would as I say normally be proposed by an employer who wanted to terminate someone's employment and avoid claims. If you go to them and ask for one you give the impression that either you have no desire to bring a claim anyway, therefore don't present much of a threat, and/or are not sure you have a good claim to bring, and/or want to leave employment anyway. None of those situations give them employer much incentive at all to offer you money tbh.

flowerybeanbag Fri 19-Jun-09 11:10:35

gives the employer

DaddyCool Fri 19-Jun-09 11:18:09

I'm a finance director and company secretary for a company which is under a group which owns 2 similar companies in the UK (one of them me)

they are merging the two together. They are winding my company up and moving all the back office to the other company.

Nothing is 'official' yet but already they've appointed my counterpart in the other company as finance director and company secretary for the new company and they've said that I can be in a lessor role for awhile then after that, I'll probably have to relocate to Belgium but they can't guarantee that yet.

They've appointed all the senior positions without any formal process except for some pycometric testing they carried out overseas back in April (which I scored extremely high on!)

DaddyCool Fri 19-Jun-09 11:18:57

By the way, the appointment of my counterpart in the other company IS official and has been formally announced on the intranet.

DaddyCool Fri 19-Jun-09 11:20:08

... also, I had a call from the CFO afterwards telling me to hold tight, there might be something else available (which turns out to be the relocation) and *"realistically, xxxxx had the job before this whole process began"* !!

edam Fri 19-Jun-09 11:23:19

Compromise agreement sounds like A Good Thing but flowery's right, it's normally the employer who suggests it.

I had one when leaving my last job - can't remember whose idea it was, which is not much help.

flowerybeanbag Fri 19-Jun-09 11:39:36

There is nothing saying what kind of internal process must be used for appointing positions internally and without more information I wouldn't want to comment exactly on what kind of case you have and exactly what for, there are various possibilities.

However either way, your best bet to get a decent compromise agreement is to clearly and formally set out to them in writing what they've done wrong legally. You'd be required to do this before you could bring a tribunal case anyway.

So if you're dismissed, you need to formally appeal the dismissal, pointing out where they have not followed a legal/reasonable procedure and stating that you believe you have been unfairly dismissed.

If you haven't been dismissed, you need to raise a formal grievance, again pointing out clearly where they have broken the law or not followed a legal/reasonable procedure, and if you believe it's constructive dismissal, exactly why.

Then leave the ball in their court. You need them to read your appeal or grievance, probably take legal advice, come to the realisation that a claim is a) likely to be forthcoming, b) reasonably likely to be successful and c) will be expensive in terms of compensation and/or legal costs, therefore leading them to the conclusion that settling the dispute with a compromise agreement would be the best option.

DaddyCool Fri 19-Jun-09 11:43:45

Thanks Flowerybeanbag. That's just what I needed. I wanted to speak to a local employment law solicitor first but she is £200 and I was resistant to paying that. It looks as though I can't avoid that and it'll probably be wise if I pay the money and take her advice.

flowerybeanbag Fri 19-Jun-09 11:46:10

I think so tbh. You could of course do the grievance or whatever yourself, but in this type of situation where you're hoping to negotiate something and put yourself in the best position to do that, then taking advice about exactly what your claim would be so that you can write a very formal-sounding grievance leaving them very clear of the likely outcome would be worth it I think.

flowerybeanbag Fri 19-Jun-09 11:47:09

Just to add, in terms of getting the agreement checked when it's drafted, your employer would need to pay reasonable legal expenses for that anyway, so hopefully your own personal legal costs will be small.

tigerdriver Fri 19-Jun-09 22:19:03

what flowery said (several times)

Daddycool, do you really think that £200 (presumably per hour) is too much to pay to sort out your situation? Given that you are quite senior in your company. They'll probably cover most of the costs, (might not, but in this sort of situation I'd think they would).

Doozle Fri 19-Jun-09 22:30:50

Daddycool, you can often get free legal advice on employment matters via your household contents insurance policy.

Check out yours because, surprisingly, many of these policies do cover for this.

I got advice from a very good law firm this way when I had a dispute with my employer and didn't cost me a bean.

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