Protected Conversation and Settlement

[JamesBlonde007]

For context: I currently work in a senior leadership role in London, have been there since the beginning of 2022 (over the critical 2 years threshold)

Last week, completely unexpectedly, I was brought into a room with my line manager and HR, and offered a “protected conversation” ultimately culminating in a settlement offer in exchange for termination of my employment.

Reasons behind this were stated as performance concerns and a misalignment of values, however from the start of my employment there have never been any performance issues raised, nor have I ever been on a PIP - infact all previous performance reviews have been 4/5 and I have been paid healthy performance related bonus payments, the last of which was only paid September 2024.

They've offered what I believe is a paltry 1 months salary on top of my 3 months notice period as a termination payment. Anyone have any experience in this sort of things and/or tips for negotiations?

Although i’m aware it is my legal right to reject the settlement offered and return to work, I have no faith that my employer would do anything other than actively manage me out of the business by putting me on an unrealistic performance plan. They have also informed the wider business I have “exited due to performance concerns”. These accusations are slanderous and untrue. This has made any return, to the job I loved dearly, untenable.

Paired with a volatile job market currently, this stands chance to put me into pretty extreme financial difficulties. What could I realistically expect to be able to get out of this? For once in my life, I am genuinely terrified and feel like I’m in a permanent anxious state.

Oh I'm so sorry OP, this sounds like my worst nightmare!

I'd make it clear there needs to be a significant bump in the offer and if not you'll happily return to your role and they can manage you out. I'd get proof of however the wider business was told (email?) and start dropping in information about the lawyer you're talking to. You don't need to actually do any of that, but I think you definitely need to become 'difficult' so they want to pay you as much as they can to have you gone ASAP. Now is not the time to do all the meek/polite responses we're trained to do as women in the workplace!

Put your negotiating hat on and fast

if you return to your role and they have to manage you out that’s what, realistically probably 6 months to work through a PIP process, maybe 3 if they push to get through it quickly . Then they still have to give you the 3 months notice after that. So it’ll cost them 6-9 months salary to do this the hard way. On that basis I think you should aim to walk away with 6 months salary as a baseline, made up of settlement + notice. Settlements are often tax free for you so the more of that 6 month package is settlement the better. But that doesn’t change the cost TO THEM so don’t let them use that as a way to negotiate you down.

Then you have the spicy trashing of your reputation by already saying you’ve left the business for performance reasons while protected conversations are going on. I reckon that is worth an extra few months payout . Typically a settlement would involve a mutually agreed line about your departure which you could expect to be at minimum neutral and not refer to any performance issues. I’d expect to agree wording for that, plus assurance of a good reference . They’ve already trashed that so you should get extra compensation.

Consult a good employment lawyer. Gather as much evidence as you can about the statements they’ve already made.

Try your home insurance as they may have a legal helpline you can start with, or offer cover for employment disputes

"you have the spicy trashing of your reputation by already saying you’ve left the business for performance reasons while protected conversations are going on. I reckon that is worth an extra few months payout . Typically a settlement would involve a mutually agreed line about your departure which you could expect to be at minimum neutral and not refer to any performance issues. I’d expect to agree wording for that, plus assurance of a good reference . They’ve already trashed that so you should get extra compensation."

agree with all this

You are employed so could for example go off sick for 6 months then raise a grievance ... you are still in a positon to negotiate, however I agree that you have lost faith in your employer, and they are likely to put you on a (bogus) pip to manage you out

I was in a similarly unjustified situation (after 7 years employment!). Consulting a lawyer, a normal settlement would be 3 months salary + 3 months notice. In your case go for 12 months as your start because of poor treatment (assuming you are reasonably senior?

I suggest consulting an employment lawyer ASAP and also contacting your union if you are a member. Both of these steps helped me personally get a better outcome

What do you think is actually behind this?

Thank you all dearly for your responses.

It’s cemented what I already thought in my own head - I think I’m just a bit too shell shocked to properly process things (rare for a usually instant decision maker), this really has side swiped me!

I know exactly what is behind it, my company has just gone through a large PE acquisition and the acquiring company is an American giant. American giants are doing what American giants do… slashing everything and making all focus on profits.

Unfortunately for me I’ve always been one to stick my head slight above the parapet, I hold too much personal integrity to tell fibs or bullshit people. They now want a putter upper, shutter upper.

Have already consulted a solicitor, although they wanted an extortionate chunk to negotiate for me (gulp!), I figured I should be articulate enough to pen the initial response at least.

I am going to go in at 3 months notice (not counting this as part of any sweetener given I’m contractually entitled) + 9 months salary + accrued holiday.

I have all the evidence I need regarding their message - our entire company was told in a town hall that “any recent exits were as a result of performance management”, there’s even a nice shiny slide that went with it. They’re picking off people with less than 2 years service, and offering settlements to a load of others, 10% of workforce. I smell a rat.

cunts

I didn't think you could have a "without prejuduce" conversation without being in dispute? Which means the conversation can be used against the employer?

Hi OP - PM me if you want reccos for other solicitors

A better outcome for you might be eg to force them to make you redundant

OP check your house insurance in case it includes legal expenses. Mine did when I got shafted at work on maternity leave and I got free legal representation through it. Didn't even realise it was a thing until someone mentioned it to me.

This is not a "without prejudice" conversation. This is pre-termination negotiations under section 111A of the Employment Rights Act 1996. There is no need for any pre-existing dispute. It is automatically protected and nothing said in the discussions can be used in Employment Tribunal - indeed, even the existence of the discussions cannot be used. So no, the conversation cannot be used against the employer.

OP's employer should offer to pay for a solicitor to advise her. The settlement agreement is not binding on her unless she has received independent advice from a qualified lawyer or someone certified and authorised to give advice on behalf of a trade union or advice centre. The sum offered is unlikely to be enough if OP wants the solicitor to negotiate on her behalf, but it should be enough to cover advice on the agreement.

@JamesBlonde007 - They clearly want you out. You won't get to return to your job. This is their opening offer. They will expect to have to pay more. If they have specifically said to others that you have exited due to performance concerns, that has strengthened your position and should be reflected in the final settlement. You won't get as much as you would if you took them to tribunal for unfair dismissal and won, but you won't have the stress of going to tribunal with the possibility that you might lose. They've already offered you 4 months pay, so you can probably get them up to 6 months and possibly a little further.

In case your employer hasn't mentioned this, it is generally the case that the first £30,000 of any settlement is tax free. However, any part of the settlement that is notice pay or holiday pay will be taxed in the normal way.

Thanks for your response