Would you walk from your role for a year's salary settlement deal?

[UndoRedo]

Workplace relations have broken down, and my employer has opened up the conversation regarding a settlement agreement, with pay out and reference. I'm early 50s, been there almost two decades.

Would you take the money and run? I have a niche role, but there are other roles out there and consultancy opportunities. But as a single person with a mortgage, it is a risk!

I think you should consult a lawyer who specialises in these things - I don't think 12 months is anywhere near enough. They have taken this step to circumnavigate potential tribunal and that could be an awful lot more. I would think they should be paying for that legal advice as well.

In my view this is more about personalities usually ie the boss and subordinate or a specialist and manager type of thing.

I would a) get legal advice b let them continue negotiations now as its easier to be objective and negotiate without emotions etc and c) make sure there is a proper agreement in place as to what the payment is for, what the tax situation is and what restrictions there are on you to practice your trade ie gardening type leave

Yes please 🙏

Then I’d be going for more than a year and trying for 18months. Having worked in the public sector it is a nightmare getting rid of people - especially if it is only due to a relationship breakdown - my previous director got much more than statutory when the new leader took against him!

I earn 6 figures and have a fairly niche role. If I was offered a year's salary I would bite my employers hand off. I'm exhausted and desperately need a break from work, I've worked non stop for over 20 years. If I budgeted (which I don't now becuase I'm too lazy to) I could live of my salary for a couple of years so I'd do it. Everyone's situation is different though.

Do you realistically think you'd be able to get another job, not necessarily in your current industry, after a 12 month gap?

I did. I was about the same age as you. I had a new boss who didn't take kindly to managing someone who he knew had been offered his job and had turned it down. He went as far as manufacturing a gross misconduct charge which referenced an incident that had absolutely no connection to me. I spun it out with gardening leave for about 5 months while they tried and failed to dig up any dirt then took a payout of about a year's pay.

I took it as an opportunity to step back a bit and look for a job I really wanted to do. I'm still in the same profession, just side stepped into a slightly lesser paid job but with much less responsibility and stress. My friends refer to it as my "semi retirement". I'm also quite niche, so there's no real advantage in being anonmyous when job searching, though it was known that I was looking to get out my current job so I wasn't asked too many questions that would breach the NDA. In the end, I was offered a new job 2 weeks after signing the settlement agreement.

I had a very good lawyer supplied by my union (Affinity). Up to £30K is tax free and you pay tax on the remainder. Don't forget to include unpaid leave and notice period pay in the discussions.

Depends what the salary is and how it would be taxed

Yes!! Have faith in yourself and get yourself out of that place! You can temp doing some thing basic while you job hunt.

• Get legal advice.
• Look at the local general job market as well as the national job market for your skillset.
• Do the maths and see how much dent you can put in your mortgage.

It might be worth taking the money and stacking shelves short-term if the payout clears the mortgage.

A settlement absolutely can be paid tax free

If you were mid 50s wouldn't you be entitled to early retirement on full pension?
I would take some decent advice given how close you are to that tipping point

Yes absolutely. That’s good deal and there won’t be a happy outcome if you turn it down.

Yes, in your situation I would because it sounds like they want you gone so I wouldn’t be hanging around so they can ‘find’ something to sack you for. Even if you don’t find your dream job in 12 months I’m sure you could find something to pay the bills.

Take it and leave I'd say.

I wouldn't because I wouldn't find another job like the one I have within a year.

Take the money. Work place relations breaking down sound like a horrible place to keep working. A year hopefully should be enough time to find a new job.

I agree with a PP poster saying push for more money though.

I'm thinking 18 months might be more appropriate given the circumstances. Their opening offer was around 8 months, which I politely declined.

I've applied for a couple of roles, speaking to recruiters already.

I would. If relations have broken down and you don't take this it sounds like they might hustle you out anyway via, say, redundancy, and you won't get such a good deal. Do you actually want to stay there? All sounds a bit toxic.

100% yes.

I would have done , I think, when I was working (I’m retired now), but I was in a position of some strength as a niche, experienced and well-connected and regarded expert. I knew, therefore, that securing consultancy work was very likely.

I don’t know if this is an option for you - I suspect not, but just in case: a friend in a similar situation to you negotiated an exit deal that was in large part redundancy (so tax free) plus some months’ gardening leave, which meant continued holiday and pension payments. It worked well for them, as they used the gardening leave time to line up interviews and put together a consultancy package and marketing strategy & tools.

If it’s tax free then yes I would, a lot depends on your individual circumstances.

if it’s tax free it’ll last about 18 months if you pay yourself your usual salary. When are you planning to retire? What does your pension look like etc.

I would because I know I that my specific role is still one in which, even in my 50s, I could quite easily get a new position on the same terms. On the other hand I have never, ever heard of this kind of settlement being offered in my field! People would simply be managed sideways if good at their job but clashing with the team or management. I've never heard of anyone refusing to take a sideways move unless it was because they chose to move employer, nor asking to be paid off.

In your scenario it'd depend upon how sure you are that you'll walk into a new role. I wouldn't if it might mean this being the last job you have, which is a risk in your 50s in an awful lot of roles.

Only the first £30k of any payout, redundancy or settlement agreement is tax free.

If you take a settlement OP make sure you either work your full notice period, or are paid in lieu of it. Otherwise you will pay more tax on your termination payment.

Only £30,000 is tax free.

Will they cover the cost of you receiving external legal advice?

And how much mortgage do you have left?

a year salary, 30k of it tax free, do you have any bonus etc? If so I would a year, make them add the bonus and run.

what sector are you in?