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negotiating a figure for out-of-tribunal settlement

8 replies

redundant · 02/02/2011 21:21

hello, just wondered if anyone had any advice re this.

I was unfairly dismissed last summer, and my case has been taken on by solicitors (had cover through my house ins).

The sols calculated my schedule of loss as well above the max that a tribunal will pay out (i had final salary pension scheme etc). So far ex-employer has offered me a very small fraction of that to settle before the tribunal.

Just wondering if any advice re how to play this, what tribunal might award if i held out for that etc.

TIA.

OP posts:
flowery · 02/02/2011 23:14

It's impossible to say without an idea of how strong your case is. An employer is most likely to consider paying a significant amount to settle if they feel the employee has a good case and is likely to get a high award in the event of a tribunal.

If they've offered a tiny amount it may be that they think you don't have a particularly good case, or that your schedule of loss is unrealistic, or both.

How far off is the tribunal? If it's very early days and the stakes aren't particularly high yet, that's another reason they might not be inclined to offer lots.

redundant · 03/02/2011 10:34

thanks flowery. Tribunal is a month away. I and sols think case is strong but then I guess we would.

Co has a track record of settling out of tribunal with people, so I think they are probably better at playing this game than I am! Its all a bit ridiculous - in a way I would rather just let it run to tribunal and let them decide, but the money is important at the mo (pregnant with HG so can't work at the mo and am self employed) and I don't want to risk turning money down and then regretting it - which i suppose is what the co. is banking on!

Is difficult as there seems to not be very much guidance as to how the tribunal would deal with the final salary pension thing, which makes up a fair chunk of my losses.

I think I will sit tight and try to stick to my belief that they want to go to tribunal less than I do.

I'd be a rubbish poker player!!

OP posts:
StillSquiffy · 03/02/2011 11:20

If they are willing to settle a month away from tribunal then my guess is that they are really keen not to go. If you have a strong case then you have nothing to lose in holding out. If I were in your shoes I would wait and see what they offer the day before the tribunal, but you do of course run a risk of it all going ahead and you getting less.

redundant · 03/02/2011 14:32

thanks SS - yes that's my plan of action at the mo (not sure i have the nerve to hold out till day before but at least till that week!). Fingers crossed.

They are a co that relies very heavily on warm and fuzzy feelings about their brand, so tribunal would be bad for them.

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Heroine · 03/02/2011 15:14

If it were me, I would a) not respond straight away b) construct your high cost schedule c) play brinkman - when they negotiate 'on the steps' - just before, bang the cost schedule in and say 'That's my position'

I suspect if you do nothing now, they will panic and try to start negotiations - if they do, you have an idea of how keen they are to settle.

There will be some to-ing and fro-ing, but stick tight to your high costs schedule - when I was younger I grabbed the first or second offer, later I was in a negotiation and asked my adviser to get about six times what was originally offered - he did.

I would also make noises about re-instatement - if they think you want to go public AND be reinstated, their hearts will start fluttering, because re-instatement after unfair dismissal is (seen as) difficult to manage and it really puts them under pressure. (reinstatement can happen with compensation, so doing this, if they want you to stay out will mean that you can hold to a higher offer).

Ask your solicitors, obviously, but play high figures and hardball - you have nothing to lose at the moment, so don't be nice- that is what they are counting on,.. how dare they!

redundant · 04/02/2011 10:44

thanks Heroine, that's really helpful, and probably what I needed to hear. They are def counting on me rolling over and being grateful for anything.

My sols advised (as you suggest) not to turn down the offer they made, but to just supply them with how we worked out the schedule of loss, so they can see how we got to that figure, which we have done. Am now sitting tight.

Do these things really often go to the wire? As in day before the trib? I guess they can do. Eeek.

On the tribunal form we stated that we were looking for both compensation (sure that's not the word used) and also reinstatement - seemed a bit odd to me but sols said was ok doing both and made exactly your point about the fact they won't want that.

thanks for your help. Am sure I will be back in month for more advice and hand holding!!

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redundant · 04/02/2011 11:35

Just found out my ex-employer has come back to my sols and asked if we can jointly appoint a barrister to look at the schedule of loss, specifically the pension element, as that is what they are querying. Sols have to speak to insurer, as they would be funding it, but looks like that might be the next step.

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Heroine · 04/02/2011 16:21

Interesting - and movement - but if they are querying, I would suggest that they cover the costs, even if you joint appoint.

Going for reinstate and compensation is a good tactic, as that is a win for you if they call it, but an extra on the table that they will have to pay for if they want to block reinstatement - sounds good to me!

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