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Share your dilemmas and get honest opinions from other Mumsnetters.

To think she’s lying? Or do companies really do this?

189 replies

BlazingSunsh · 23/08/2024 20:10

A friend I have got closer to over recent months told me that she fell out with her employer, a law firm, and was paid 70k if she agreed to leave without further fuss. She was on 90k at the time. The dispute was over her workload/what she had been given and how she felt she had been blocked to progress. The company disagreed but wanted her to leave so apparently offered this? I find this totally unbelievable?! 70k with no tax? Do these things happen?! If so I want to try it as that’s basically two years of my entire income after tax!

OP posts:
TheHateIsNotGood · 23/08/2024 22:27

And of course all these 'pay offs' and 'settlements' for male bullshit eventually does trickle down to increased costs for the little people at the bottom.

Here's an idea; what about trying to eradicate the emulation of existing of patriachies as being the 'gatekeepers' of women's progression with a better share of all 'caring responsibilities' between the gender roles?

All fairy dust until women stop shitting on other women in order to get ahead.

provemewrongthen · 23/08/2024 22:27

My sister is the person that does these pay offs where she works. I have offered to go and work for them then get paid off to leave after I balls it all up.

TeenLifeMum · 23/08/2024 22:28

Our council paid a director £200k to leave. It’s outrageous.

MillicentMama · 23/08/2024 22:29

It’s a simple way for companies to avoid a long and protracted HR process. Compromise agreements avoid a long, boring grievances, performance improvement plans etc.

I’ve just dealt with an employee grievance. It’s taken hours and hours of work over the past 6 weeks. The allegations are nearly all horseshit, intended to get a pay off I think. I’m determined the person won’t get a penny though 😂

It’s doubtful you’d get 2 year’s salary. 3 months’ ex-gratia (up to 30k is tax free), possibly a portion of bonus, plus pay in lieu of notice (taxed) isn’t unusual for a settlement.

Neodymium · 23/08/2024 22:31

I knew someone who was a lawyer too, and got paid out her wages for the rest of her working life. No idea how she managed it. But she did, it was millions. Employment law was her area so she obviously knew what to say.

FunnysInLaJardin · 23/08/2024 22:32

BlazingSunsh · 23/08/2024 20:14

@Hectorscalling what on earth

Someone tell me what fuss I have to make to get one of these 😂

you dont make a fuss, you just fight for your life if you are being made redundant and your household income is being reduced by 2/3rds.

You sound fairly naive tbh @BlazingSunsh

PlacidPenelope · 23/08/2024 22:35

Yes it does happen more often than you think, companies 'buy off' people to get rid of them, make them go quietly without a fuss usually signing NDAs as part of the settlement.

PrettyPickle · 23/08/2024 22:35

Sadly yes, its a compromise agreement and you are basically agreeing to leave without kicking off and waiving your right to taking any legal action. Without it, they may have no legal reason to get rid of you (so you could sue for wrongful dismissal etc) or you might bring a case against them and even to defend a case when you win, it can cost thousands and isn't good for your reputation. It all depends on how desperate they are to get rid of you, how long you have been there and what your salary is.

Bunny44 · 23/08/2024 22:36

namenamification · 23/08/2024 20:14

Yes of course it happens, although the amount is taxed as income.

Its usually proportional to salary and of the order of 3months plus payment in lieu of notice, but can easily go up to a years pay.

Can be a lot more if the company knows they are doing something wrong. Eg I got a small fortune when they paid me off for getting pregnant.

I got much less when they pushed me out for being pregnant 🥲. Depends on the company.

TheHateIsNotGood · 23/08/2024 22:37

Is it not better that the working conditions of all workers improve rather than a very few people taking a great pay-offinstead?

Moreso if it's the local taxpayer funding super-wimpy person's early retirement, in-btween job sojourn, etc.

Fanlover1122 · 23/08/2024 22:47

BlazingSunsh · 23/08/2024 20:10

A friend I have got closer to over recent months told me that she fell out with her employer, a law firm, and was paid 70k if she agreed to leave without further fuss. She was on 90k at the time. The dispute was over her workload/what she had been given and how she felt she had been blocked to progress. The company disagreed but wanted her to leave so apparently offered this? I find this totally unbelievable?! 70k with no tax? Do these things happen?! If so I want to try it as that’s basically two years of my entire income after tax!

Law firms do this ALL THE TIME, like all the time. The first 30 k will have been tax free. Can’t believe she was that loose lipped about it! Although I do hope she has told her colleagues how much she got….so they know how much to go for! 🤭

PlanningTowns · 23/08/2024 23:04

Not just private companies who do it either. But in government they will often do it if they have cocked up and know a tribunal will be forthcoming (another reason to be in a union as they support the process).

but unlike a pp people with poor attendance due to illness will go through capability rather than be paid off. Unless they discriminate of course.

Elphamouche · 23/08/2024 23:13

Yep this is entirely real

FountainsOfPens · 23/08/2024 23:15

Flip side - over my career so far I've been paid a total of £70k over there separate occasions to stay with the company (retention bonuses). I don't even think my bonuses were that high compared to some.

It's amazing what big numbers are bounced about.

User6874356 · 23/08/2024 23:19

BlazingSunsh · 23/08/2024 20:13

@SilverBranchGoldenPears you got 30k?!? Why don’t people try this more often then, these are huge sums

Try what? They wanted to sack her because she complained. That’s illegal so they had to pay her off.

it is common in law firms to treat staff badly, ignore employment rights and have to pay staff off. She got less than a year’s salary and it Will damage her employment prospects and career

Rowansiskin · 23/08/2024 23:21

The company next door to mine has a specific budget amount set aside for this.

User6874356 · 23/08/2024 23:23

Neodymium · 23/08/2024 22:31

I knew someone who was a lawyer too, and got paid out her wages for the rest of her working life. No idea how she managed it. But she did, it was millions. Employment law was her area so she obviously knew what to say.

That doesn’t ring true. It’s extremely rare to get an award like that from a tribunal and no law firm would settle at that level.

User6874356 · 23/08/2024 23:26

BIossomtoes · 23/08/2024 20:32

You can have two employers simultaneously. You just have to pay tax on everything you earn in the second one.

Not if you’re on garden leave. The point of that is to stop you working elsewhere and taking clients etc.

User6874356 · 23/08/2024 23:27

BlazingSunsh · 23/08/2024 20:14

@Hectorscalling what on earth

Someone tell me what fuss I have to make to get one of these 😂

some you call your friend was forced out of their job. That’s happened to me and it’s incredibly traumatic even if you put a brave face on it. Maybe try to have some empathy

User6874356 · 23/08/2024 23:29

BlazingSunsh · 23/08/2024 20:15

@FriendlyNeighbourhoodAccountant well my friend has no real basis to complain, it was very much embellished and she admitted that as it was going on!

What a horrible thing to say. She lost her job because she complained about her working conditions. Wow -not a great friend are you

Ozgirl75 · 23/08/2024 23:30

It’s not always if the company has done something wrong. The costs of a tribunal, whether you’re found to have done something wrong or not, are high. It’s often a lot cheaper to just pay someone off rather than go to the cost and bother of a tribunal even if you’re confident you can win. Because there are rarely costs orders in the tribunal, the defendant will be thousands of pounds out of pocket even if they win, so it’s often a commercial decision to settle rather than spend those costs and the time on legal proceedings.

CatMum10 · 23/08/2024 23:54

Yes. I technically got a settlement agreement once in lieu of voluntary redundancy pay. They couldn't make me redundant because I was pregnant and that was against their policy, in case I said later that it was discrimination. Even if I wanted to resign and asked for the redundancy. To get around it they paid me a sum, and I signed to say that I will never come back to them with a tribunal or defame them for any reason, or they can ask for some of the money back.

NotSoHotMess24 · 23/08/2024 23:55

BlazingSunsh · 23/08/2024 20:15

@FriendlyNeighbourhoodAccountant well my friend has no real basis to complain, it was very much embellished and she admitted that as it was going on!

What an odd thing to be jealous about!

Katbum · 23/08/2024 23:58

Similar happened to me. You can’t just make it up though! Your employer will only pay out if they consider they will potentially be liable in an employment tribunal.

NiceCutRoundDomeDormice · 24/08/2024 00:08

MasterBeth · 23/08/2024 21:26

Yes, let's hope no-one from this totally anonymous company is reading this thread about the totally anonymous ex-employee.

Oh FFS - do you think it has only happened twice?

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