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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think settlements/compromise agreements can’t be THIS common…?!

117 replies

Uyyyy · 16/02/2025 18:58

A friend I used to work with recently confided in me that she had an 80k settlement (she was a high earner) after she claimed her boss didn’t like her as she was a single mother to two children with separate fathers and that he used to actively set meetings she couldn’t attend due to school pick up. She said she never had to even go to court, she just caused one hell of a fuss, went off sick and then they paid up. It turns out another friend from an entirely different company got six months pay for basically not much at all other than a fall out with line manager (large accountancy practice). I have also read the thread on here earlier about someone trying to get a settlement after being threatened with a PIP and posters saying to go for it etc… I am amazed by this, surely most companies take a hard line and force you to go to a tribunal rather than handing out a few months pay without the case even being heard?!

OP posts:
Uyyyy · 18/02/2025 07:11

FKAT · 17/02/2025 21:42

Said it before on this thread but discrimination is not the only reason for pursuing a case of unfair dismissal. It's a big one but there are lots of ways an employer can act illegally without it being discrimination.

@FKAT what other ways? I guess bullying is one

OP posts:
Uyyyy · 18/02/2025 07:15

Meadowfinch · 18/02/2025 01:29

I've had several.

The largest payout was because my boss told me in a monthly 1-2-1 that "frankly she doubted my ability to do my job because I had a small child."

This was on day three of me working for her before she'd actually asked me to do anything. Unfortunately for her, there was a witness to her bigotry, a company visitor. And it was in the week our company had publicly declared that motherhood was valued and female employees worldwide would get the same maternity rights. She tried to bully me into leaving. I went to HR, with a sworn statement from the visitor. They paid me 6 months money, mostly tax free, to leave quietly.

The most recent one. I was recruited during lock down on a fully remote contract. The company didn't have an office at the time, having let their lease lapse so it was to suit them. Recently, the CEO decided everyone had to be in central London full time, which I cannot do (school run). To fire me for not going into London every day would have been constructive dismissal so they had to buy me out of my contract. Five figure sum.

When companies cock up, break employment law or change policy, a compromise agreement is normal in my industry.

@Meadowfinch what would have happened if you’d not had a witness though? I’ve had loads of implied comments like this but not with a witness

OP posts:
MissHollysDolly · 18/02/2025 07:29

If there's no witness it's harder but still possible. Gather evidence. Eg after the 1:1 write a follow up detailing what was said and send to them. It won't "hold up in court" as it were but you can get a pattern of evidence

Spirallingdownwards · 18/02/2025 15:14

Cavalierchaos · 17/02/2025 20:12

We don't have a grievance policy unfortunately so I don't know how to do that...

You can raise one anyway by simply stating you are.

MrsPinkCock · 19/02/2025 17:58

The largest settlement agreement I ever dealt with was over £500k. Anecdotally my lawyer colleagues have dealt with higher.

My £500k client involved a loss of PHI and pension, so even as a moderate earner, the cost quickly racked up!

FernaFrey · 16/02/2026 10:54

I'm being told, after maternity leave that I must return 5 days a week in office. They are giving me a transition period of 6 weeks where I can wfh 2 days a week. I have wfh 2 days a week the last 4 years successfully but the firm have a new 'vision'.

Problem is, I have worked flexibly successfully for 4 years, there are co-workers that wfh but that's written in their contract, we do exactly the same roles, others have been offered a longer transition period from maternity (albeit they are in a different division) and there are others in the firm that wfh off the radar.

They have given business reasons that haven't changed over the last 4 years, so it's worked well then, what has changed now? I'm being told to come in 5 days a week where I will be performing duties for the other employees that wfh, which I was just told could not be done at home. It's not fair.

I've been told it's manager discretion, not firmwide. Then I'm told the 5 day in office rule is the 'firms vision'.

They're inconsistent in their considerations, I'm being put at a significant disadvantage as a working returning mother. I will have to resign.

Any HR gurus think I stand a chance?! Oh, also I am pregnant again which they do not know yet as I'm early stages.

Thanks

BillieWiper · 16/02/2026 10:57

Uyyyy · 16/02/2025 19:02

@EveryKneeShallBow even when there’s no actual discrimination?! Or other cause of action? Surely it just encourages people to make claims that are unfounded

But how can you be so certain there wasn't any. There must have something or they wouldn't have paid up?

deademptyduck · 20/02/2026 21:08

A company I was director at paid them out regularly. It takes months to get someone out and ttibunals are risky. It’s safer all round to pay out and get rid very quickly. In fairness it was often used when someone wasn’t a fit and not just when they complained.

Astra53 · 21/02/2026 04:36

Companies will always try to a negotiate a settlement deal rather than go tribunal. Apart from employer costs involved in going to tribunal, it also means hours of time investigating and gathering evidence by HR & Legal. It is far simpler to pay the aggrieved employee and make the problem go away. It also avoids potentially damaging publicity for the company.

writingsonthewall · 21/02/2026 13:37

my company have just exited a ton of people via settlement agreement. I don’t really know why they didn’t just do it via redundancy with an enhanced payout. I guess it’s much the same in the end.

TeknoPhobe · 21/02/2026 14:19

@writingsonthewall because if it is more than i think 15 employees they make redundant they have to declare it and may incur potential market/reputational damage. With settlement agreements they can make hundreds 'redundant' but not have to declare to anyone

writingsonthewall · 21/02/2026 15:11

TeknoPhobe · 21/02/2026 14:19

@writingsonthewall because if it is more than i think 15 employees they make redundant they have to declare it and may incur potential market/reputational damage. With settlement agreements they can make hundreds 'redundant' but not have to declare to anyone

Makes sense. Some of the amounts people got were literally insane

MagneticSquirrel · 21/02/2026 17:14

Very common, you can settle with someone on 120k for 6 months pay and replace them with a 60k employee (who may not be aa experienced but who cares as long as the margin looks good - customers whatever!) and the company is quids after a year!

(And that’s before you factor in the extra pension costs, life insurance costs you have with a 120k employee vs 60k)

FernaFrey · 23/02/2026 11:18

How long does a settlement usually take?

Dueanamechange2025 · 23/02/2026 11:31

FernaFrey · 23/02/2026 11:18

How long does a settlement usually take?

Usually 14 days from discussion to end of employment in the company I worked for. Happened a lot!

FernaFrey · 23/02/2026 15:17

@Dueanamechange2025 blimey! Thanks for your reply x

catipuss · 23/02/2026 15:22

It depends how damaging to the firm it could be if bad things were reported in the press. And how much it would cost in time as well as money to defend it. It might just be simpler to settle, but some companies definitely wouldn't settle on principle. And of course how big and rich the company is if they can't afford a big pay off they will fight it.

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