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Compromise agreements... what do I need to watch for?

8 replies

Peppapigsarse · 08/03/2012 22:36

Basically my face don't fit! whilst on ML I was tupe'd to another org and despite being at new company almost a year its not been good...

No disaplinaries against me....

2 weeks ago client asked me to be swapped out (very difficult client - who everyone hates working with!) My client side manager is unhappy my "people/HR" manager who I've met all of two times is ineffective and not really a good people person.....

So I honestly think that its my face don't fit.......so does my site manager....

What do I need to watch for what should I insist on?

The meeting came about i got an email/text to come to HQ today, after meeting a senior manager for the first time his opening line was I asked for this meeting to "discuss you leaving the company" then followed on by this isn't redundancy situation (we have redundancy going on at the mo).

They can't do redundancy as they are offering jobs same as mine but based at another site (A site collection of these roles, only me and one other work from home/client site/remotely) - however smart working is actively encouraged so this is agaist policy "norm".

I suspect its cos I am a gobbyish mare in that I am not a sheep like other colleagues....

My onsite manager is in shock like me................

What are the things I need to watch out for on the agreement??? What are my rights????????????/

Many thanks in advanced. xxxxxxxxxxx

OP posts:
prh47bridge · 08/03/2012 23:08

A compromise agreement cannot be enforced against you unless you have received proper legal advice. It is therefore in your employer's interests to pay your legal fees. Make sure they do and make sure you see a solicitor who specialises in employment law.

WorriedBetty · 08/03/2012 23:22

Well the way they phrased that meant that you could resign and claim constructive dismissal - saying 'you leaving company' is effectively an unfair reasonless dismissal. This means that at the very least, you should be negotiating for more than the fullest compensation you would expect after a year of taking them through employment tribunal PLUS legal fees (say £20K) that would result from a tribunal. ET compensation would include salary to the date of hearing, and a figure for how long it will take you to get comparable work (arguably 1 year), plus a basic award.

I would ask for three year's salary as a minimum on this basis, a compromise agreement that allows you to write your own CV, a selective banning clause (eg 'I reserve the right to speak to close friends and advisers, and to be able to discuss this case without naming the company should I be asked to advise in a professional capacity aspect for which this case would be relevant'). This means I think you should say you expect five years before you progress as you would expect to, ask for three year's salary, and compensation for an enforced career plateau.

In many ways you are protected as if there is a move to dismiss after this, or your performance is questioned, you can raise this conversation. Make sure you e-mail a summary of what was discussed to the person who discussed it with you. eg 're suggestion I leave the company, I understand you are completely happy with my performance and wish to propose a compromise agreement. I will be taking advice over the implications of this conversation.

Was the meeting witnessed/notes provided? If not include your notes in/attached to your e-mail. You may need this trail if they start playing silly buggers.

Note - they have offered and started negotiations - you are in a very strong position.

WorriedBetty · 08/03/2012 23:23

oops write your own reference I mean!

Peppapigsarse · 11/03/2012 20:59

Thanks worriedbetty.

They offered me 20 weeks salary at initial discussions, I told them to go away and come backs its at least what I would get in redundancy situation, which is 9 months salary. Which they have now come back with....

Spoke to employment lawyer who said ET's max pay out would be 1-1.5yrs and cost easily £30k!

I'm waiting for the paperwork then will see lawyers, I'm not happy in role and working for the company (I tupe'd in about a year ago!).

So taking money and running but will ensure that I get my reference and reason for leaving agreed. My onside manager will give me a personal reference, so that's not an issue.

What a nightmare looking for a job in recession times though:-(

OP posts:
Piccalilli2 · 11/03/2012 21:04

An ET won't cost you £30k, you don't actually need a lawyer. But basically whatever the rights and wrongs if you can get them up to one year's money you're doing well and will probably be up on what you'd get at tribunal without the stress. Just make sure nothing in the agreement restricts you in job search or where you can work and try to get an agreed reference.

NiceViper · 11/03/2012 21:13

Look at when they want this to take effect. It might be to your advantage if it is the new tax year, which is less than a month away.

WorriedBetty · 12/03/2012 10:14
  1. You need to make sure that there is an agreed reference that they are compelled to use - relying on a 'personal reference' is risky as the organisation could override that with their own - you must get this agreed.
  2. 9 months salary is OK, if you have not been working long, but as an ET case might take a year to get to, and would also give you compensation for how long it could take you to get a job, 9 months is low.
  3. They have offered 9 months easily, without an ET1 being submitted - that means they consider that their best position is very weak.
  4. though at ET they would put forward they have offered an amount - they can't do that until the case - submit ET1 as a tactic/to protect you in law if these negotiations take two months
  5. Employment lawyer is yanking your chain - I have appointed a barrister direct in a complex case and her fees ar so far £6,000 for attending a CMD (case management discussion - part of tribunal proceedings), eight hours preparation, a prospect of success document and four days of excellent cross questioning - I did all the paperwork myself then went to a barrister to do the written and verbal advocacy. I would absolutely recommend this approach - how the case comes across in court (the barrister's area of expertise) is more important than paying a solicitor to do the admin work.
  6. It might cost them £30K or more - tough! That is why your offer is saving them money...
  7. If you are constructively dismissed / unfair your compensation will be a basic award (usually around £2-£3k) plus compensation for lost salary from date of dismissal/resignation until the date of the hearing (probably just under a year) plus compensation for how long you can expect to wait to get a job at the same/progression level that you are at. This could be difficult, but in the current environment, longer waits would be more reasonable.
  8. Again, remember you are saving them legal costs, management costs, HR costs, and a whole lot of time, scrutiny and disclosure - if you go ahead with ET, they will have to disclose all communications with you, between dismissing officers/line managers, perhaps minutes of restructure meetings etc etc etc and that is all time and nuisance.
  9. Your best position without negotiating is a high win at ET, so don't negotiate (i.e say 'thank you for your offer of xxx, I cannot accept' (keep reasons short/non-existent' as all points you make will become negotiation points.
10. Keep healthy - its a great weapon in cases like this but.. 11. Be honest if it is getting you down/becoming all consuming - this may affect your ability to seek work, and so any communications with GP etc on this score will guard you against accusations that you haven't done enough to mitigate your loss. 12. see www.etclaims.co.uk
Peppapigsarse · 12/03/2012 19:59

Thanks WorriedBetty, I'll follow that up!

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