Any Employment Lawyers or HR people around?

[Marie2023]

I could really do with some guidance, if that’s OK.

Basically I have been bullied at work by a very senior member of staff. The Board are now involved. It is clear that me and the member of staff can no longer work together so I have offered to leave.

I have been told that I will receive a ‘generous payout’. The thing is, I don’t know what I should be expecting. Given the time of year, I may be out of work for some time.

So what does a ‘generous payout’ look like, in relation to monthly salary? Any ideas please?

Thanks.

Hi @Katrinawaves I am just waiting for them to confirm that they’ve received the contract back and I will update.

@Marie2023

What did they agree to ?

I’m also curious, did they stick or twist op?

Given that the OP referenced a "contract", I suspect she now can't talk about this matter.

It’s anonymous and highly doubtful she’s signed an nda.

Completely wrong. There is a good chance that she has been asked to sign a settlement agreement given that she herself made reference to having to return a "contract". Most of my clients will ask all employees who are being given anything over and above their legal entitlement to sign a settlement agreement - particularly those who have put in multiple grievances, complained to the board etc. It's also ridiculously naive to think that this is anonymous given the detail and the actual screenshots of conversations. If it is seen, the OP could already be in breach of standard settlement agreement wording even though she added the screen shots before signing the agreement.

Is there an update?

Hi @GuinnessBird, sort of. They agreed to pay me notice and ex gratia payment equal to 10 weeks’ salary. They also agree to provide me with ‘the reference I deserved’ (my words, which they agreed to).

There are two issues with this:

I received the final payment and it appears they have taken 30% off, presumably for tax? I received roughly 75% of what I was expecting.

The reference they have given me makes no reference at all to my work for the General Counsel/Board Secretary at all, even though that constituted most of my role.

I just want this over how, but clearly it isn’t.

They are all at a conference this week, so I can’t even ask them about it.

Wow. That’s a result. They went from 4 weeks ex gratia, to ten, even though you asked for 8?

No, they gave me 2 weeks notice plus 8 weeks ex gratia = 10 weeks. That does not seem to be reflected in the payment, though.

You will have paid tax and ni on the payment, they are not tax free and as it’s a bigger lump sum your tax will have changed to reflect this.

So an ex gratia payment is taxed higher than normal salary?

No it shouldn’t be. Not unless it takes you into a different tax bracket.

Tax is 20% and NI 12% so a third deduction sounds about right.

Yes, but if a settlement agreement is to be signed then that will have clauses about having your own solicitor to advise on it and that solicitor should be advising you on the agreement including any confidentiality clauses in it and what the clauses mean as to if any payments are taxed. Presumably the agreement has not been signed yet.

I thought ex gratia was tax free? You should only oay tax on elements which are holidays, notice etc.

Did you get anything in writing OP?

If the employee is terminated then ex gratia payment is taxable. Tax is 20% and NI is 12% so your figures would be roughly right.