Help :( Without prejudice offer to mutually end your employment

[Amazonmulu]

This is the most knowledgable group I know so wanted to ask about an employment / legal issue - My cousin came back to work after Mat leave (20w) to be told her job was changing. She was put on a PIP three months after that. And now a month after that they have said they don’t think she can achieve the goals of the PIP (no evidence) and have offered her “a without prejudice offer to mutually end your employment in exchange for a settlement figure”. She’s been there 8y and been given two options: (exact figures removed for confidentiality):

Option 1
Payment of July Salary (subject to tax and NI deductions)

• Payment of 4 weeks pay in lieu of notice (subject to tax and NI deductions)
• Settlement figure approx 3.2 times monthly salary - This figure includes the additional 8 weeks pay in lieu of notice. This figure is not subject to tax deductions and is paid 28 days after receipt of a signed settlement agreement.

Option 2
Payment of July Salary (subject to tax and NI deductions)

• Payment of 12 weeks pay in lieu of notice (subject to tax and NI deductions)
• Settlement figure of just over monthly salary. This figure is not subject to tax deductions and is paid 28 days after receipt of a signed settlement agreement.

She has two small kids and is based in the UK.

My take is that they just want her out asap.

What’s the best thing for her to do? Any advice appreciated. I’ve never gone through this so have no experience. I am trying to help her get a good employment lawyer. She has been looking for another job in the last month.

Is there a risk if she takes too long to decide or if she tries to negotiate that they dismiss her with only basic severance? Her contract says that she has a 3 month notice period.

TIA!

They are offering a settlement agreement so yes, they want her out. Her employer should have offered to make a payment towards her legal costs.

If they dismiss her they must pay her 3-months notice and she may have a case for unfair dismissal (assuming she has been with this employer for at least 2 years). With that in mind, these offers appear pretty paltry to me. However, an employment lawyer will be better placed to advise.

How long was she on maternity leave? 20 weeks?
she should call ACAS

They have offered max £500 for legal costs.

She's been with them for 8 years.

She spoke to ACAS and they were not much help. They suggested speaking to a lawyer which she is doing.

She only took 20w maternity.

I got pretty much the same settlement as that for somewhere I'd been under a year. I'd bet good money she can negotiate much more but she needs an employment lawyer to tell her what's realistic.

I've never been in this position so have no experience. If this is a paltry settlement figure what seems more in line? She speaking to a lawyer on Friday as that the earliest she can get. They've not yet indicated what would be a reasonable settlement figure.

That sounds like it's to take the agreement to a solicitor to look over (I believe the redundancy agreement legal payment is around the same).

Would it cover extra hours for a solicitor if there were any issues? Make sure she asks.

Honestly once a settlement is offered the relationship is over and it's best got everyone to accept and move on.

She needs to contact an employment solicitor who will advise on whether the offer is a good one and who may try to get her a bit more money.

I'd advise she tries to get a bit more money but accepts it and goes.

She needs a good solicitor who can understand all the details but on the face of it the offer seems low.
£500 is low for legal advice, she has a good chance of getting more out of them than that.

I don't know. Given they are already on the PIP route, they could continue to manager her out.

Instead they're offering her a payment beyond notice, and it gives them a quick out.

With that in mind I'd take the settlement. Which ever works out better for her.

She needs them to pay her £2k for legal fees and likely they’ll say yes as it’s in their interest that she’s properly advised. She needs an agreed reference and payment of all bonuses and benefits inc accrued holiday / company pension contributions for the 3 month PILON as a bare minim. Rest will depend on facts.

If she can get another job without retraining, I'd take the settlement and go. She may be able to negotiate up, but I don't know if that's worth it as seems a fair settlement and as PP state, they could withdraw and Manage her out

Yes to all of this.

They obviously want her out so it would be good to give it consideration. They're doing it this way because if she takes the offer shes got to sign that she won't sue. Part of the agreement is that she has to take legal advice before signing. So I suggest she speaks to the solicitor about it. If she decides to take it, she needs to consider what sum would realistically cover her while she's sorting something else out.

Is she entitled to much paid sick leave?

I'm not saying it's what she should do, but IME people often max that first, and then sign the settlement agreement.

They can't manage her out, she's been there 8 years and there's maternity leave involved. Only gross misconduct would be reasonable grounds for firing her, and unfair dismissal would be a strong case otherwise.

They are on very shaky ground legally if they try to manage her out and they obviously want to get rid of her in a safe way so she may be able to negotiate a lot more. Depending on how much they want rid.

@greenpolarbear

Anyone can be managed out as long as it's done properly, following policy and process.

But it takes time and it's not pleasant for either side.

Settlement agreements are the best way to end an employment relationship in these circumstances - as much for the employee too.

The can manage her out for poor performance and that's what they're doing. They don't need to pay her anything, but offering a settlement, rather than following the PIP to conclusion is less painful for everyone.

She can ask for more and she'll likely get some enhancement, this will be a first offer, but too greedy and they could decide to follow the process.

It's a good settlement. In the public sector you get 3 months salary.

Once they are offering a settlement the job is basically over.

She should focus on which offer is better, the wording of the reference and getting a new job.

Would pregnant and screwed be worth a call?

I agree she should accept a settlement. She does need to negotiate a higher figure, it will all help. She needs legal advice.

I think there's a problem with the return from maternity to be told 'her job had changed'

And then put very quickly on a Pip - it sounds like this was done deliberately because of pregnancy

That's not acting in good faith at all

I would definitely contact pregnant then screwed and get a recommendation for a lawyer from them

This is shoddy as fuck

The game is over regarding a job role. The £500 is what the employer has to pay for an employment solicitor of her choosing to go through the SA with her & maybe do some minor changes & get it signed off. She could put more money into it to negotiate a better settlement.

i thought that the first £30k in the event of a SA was tax free so would want clarification on the offers (which are minimal).

£500 for legal costs is fairly normal. That should be enough for a lawyer to check over the agreement and give some basic advice. Some employer will go higher, but most expect you to pay if you want the lawyer to negotiate on your behalf.

It sounds like the amount on offer is little more than her notice pay and other entitlements. If she only took 20 weeks maternity leave, she should have been able to return to her original job. On the surface it sounds like she may have a claim for discrimination and a claim for unfair dismissal. I'm not going to suggest what that should look like in terms of compensation. She needs to talk to an employment lawyer. If they have any sense at all, her employer will expect her to come back and ask for more.

She won't get as much from a settlement agreement as she would have got by going to tribunal and winning, but it is money now, it takes away the stress of going to tribunal and the possibility that she might lose.

I don’t understand the structure of the offers really. You can’t convert PILON to tax free settlement so whatever notice is due must be paid and it’s subject to tax and NI. As is accrued holiday pay. Then the starting point for settlement should be the statutory calculation of one week’s pay for every complete year of service. Plus whatever enhancement is deemed appropriate. This is the tax free element. This offer is low especially given the pregnancy. She should call pregnant and screwed or an employment lawyer.