Can I receive a settlement from my employer in this situation?

[Immoods]

in a nutshell, I had to raise a complaint with work that a process had not been followed correctly. I’ll spare the details but HR essentially agreed with me and said a grievance would likely be upheld and as an alternative to going through that process they offered 6 months pay and I didn’t need to actually work my notice period of 3 months.

I’m not sure if this is a good offer?

I had an interview last week and was offered the job on Friday. I would wait until my notice expired before joining (even though I’m not being asked to work it). But then am I still ok to take the settlement even though I’ve lined up other work already?

Thanks

Why wouldn’t you take the settlement? It sounds a good offer
you already have a new job lined up as well

Take the settlement and take the new job, you might not even need to wait the six months, check what the settle agreement says.

Absolutely, you take both and enjoy!

If you mean should you try holding out for a better offer, you'd be better off asking an employment lawyer who has better knowledge of the likelihood of that happening.

Six months sounds pretty good though (since you have a job in the bag already).

Take the money and the new job!

Yes. Settlement and new job are a standard combination.

What would going through with the grievance process entail? What would be the likely outcomes? Would it fundamentally change the company processes ( or make them follow the ones they have to benefit others)? Honestly I would take the offer unless I felt it was a fight that was worth it

if your current employer is offering you a settlement, they also have to pay a solicitor to advise you. Check and do that first.

If you don’t have restrictions in your contract you may be available to work for the other employer sooner depending on the exit date of the contract. In essence the pay is instead of notice.

6 months pay in your hand and a new job lined up is a pretty good outcome! Once you started getting a lawyer involved as suggested above you'd then have to pay them, so gambling the amount you walk away with. It could be you pay to find out it's decent, or to find out that anything 'extra' you get is wiped out with their fees anyway...

There's just one caveat to the above. They've offered to settle this remarkably quickly, with what looks like very generous terms. It's been a while since I've dealt with cases like this but let's put it this way, their first offer is always low, to mitigate their loss. They hope you go away, then they can put it to bed. A generous offer from the outset that is really tempting to the (I assume) unrepresented employee is pretty suspicious behaviour. If it's too good to be true... they're hiding something.

Of course, it would be years before you got a 'true'/higher offer of settlement or had to go all the way to tribunal so the cost/benefit doesn't always stack up (and I mean personal cost to you as well, time and stress should not be underestimated in cases like this). But it would always niggle me (personally speaking) as to what kind of 'true' settlement figure they had in their mind, like how bad is this thing they've done?

Just to give you an example, years ago my ex-employer gave me a very low ball settlement offer after about 2 years of wrangling. I scoffed and joked, quadruple it and you've got a deal. They did - immediately. What does that tell you? I took it, and I'm glad I did, but I had legal representation and it was a measured and informed decision. Can you find out how much it would be to get someone to review the offer and ask them about the above?

I would take the settlement and move on.

6 months is usually a fair to good deal. When you have another job lined up and no financial loss, it’s an even better deal. It’s basically just a windfall (assuming there’s no humongous catalogue of discrimination that would justify a gigantic financial claim).

Just make sure you aren’t warranting in the agreement that you don’t have another job or job offer!

You need to see the settlement terms. One entirely standard term is that you have not been offered or accepted a new job. As you have been offered a new job if that term is included you will need to negotiate that away at the same time as considering the settlement money. Take legal advice

Another one for settlement: at most you might get a month or so more but is it worth the hassle and expense? Take it and go for the new job.

This sounds very high settlement especially given the job market is clearly buoyant as you’ve easily found another role. Keep quiet about the new job and get the settlement signed before the new employer ask for references!!

You will need to have legal advice on the settlement agreement and so your solicit will be able to advise you whether it is a fair deal.

Also be aware that settlement agreements sometimes ask the departing employee to warrant that they have not accepted an offer / have a pending offer of new employment. If you can't give that warranty they may reduce the offer made to you (on the basis that you will have mitigated your losses through your new employment).

Take the settlement but include an agreed reference

Acas advice here www.acas.org.uk/sites/default/files/2021-03/settlement-agreements.pdf#page10

Check that the settlement agreement doesn't have a clause saying you don't have a job offer - they sometimes do.

I'd say not to be greedy, take the offer and the new job and draw a line under it. Why put yourself through months of aggrevation just for a bit more money which you might or might not get ?

It sounds as though they are offering 3 months pay (net or gross?) plus 3 months Pay in lieu of notice, paid as a lump sum? Or is it 6 month pay plus notice?

You need to be very clear what is being offered and the taxable status of different parts of the payment. The amount to resolve the 'dispute' can usually be paid tax free but PILON would usually be taxable. If they are suggesting they don't pay the notice as a lump sum, just keep you on payroll but not working, then that complicates taking the new role as an overlap is very messy (especially tax wise) and I'd try not to agree to that.

As others have said, a proper settlement agreement has all the terms set out in legal format and they would pay for you to seek independent legal advice before you sign. You are usually agreeing to not take an employment tribunal claim or wrongful dismissal claim against them and the various bits of legislation under which you might claim would be set out. There will usually be a confidentiality/non-disclosure clause as well, preventing you telling anyone about the payment or the amount (other than those authorities like HMRC who are required to know).

6/9 months to leave a job isn't a bad offer but you must understand what they've offered, the tax status and what legal rights you are signing away. You should also request for an 'agreed reference' to be part of the settlement, ideally including an agreed phrase for 'reason for leaving' if asked, so that is used for all future references and they can't deviate from it.

I'd usually not start a new job until the settlement agreement is signed.

Blimey. Bite their hand off! 9 months pay and walking into a new job sounds a great deal.