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

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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!

OP - I had almost the exact situation this time last year but in the private sector and I'm in my mid-40s.

Relationship breakdown due to new manager, who unnecessarily put me on an informal pip (my previous manager said it wasn't warranted). It was clear that my new manager wanted me out and the whole situation was unbearable , leading to burnout and I went off sick. 6 weeks later I was offered a settlement package that I gladly took. Didn't have the headspace to barter nor did I want to return to that organisation especially as my manager said that the pip would be made formal in spite of me still being off sick.

Took the money, had the summer off but had started looking for another job around that time. Got a 12 month fixed term contract in HE, which is an area that I had considered moving into. Fingers crossed I'll find something permanent in that sector but taking the settlement gave me the breathing space I needed plus I was able to use the funds (along with some savings) to pay off the mortgage.

I’d personally take legal advice about your situation. Good luck!

I'll be taking legal advice definitely. Unfortunately my mortgage is still quite large, although if I move to Scotland I'd be ok 🤣

It is possible, some places do (genuine, or not) redundancy through settlements or the company will opt to cover the tax (usually less likely).

Depends on the reason stated for leaving in the paperwork. Settlement does not necessarily = tax free is my point.

Public sector redundancies are often capped at 1 years salary. Depends on the body you work for. Your union rep would be able to advise. It is very rare to go above that in my experience unless there are extenuating HR or other reputational reasons.
Given the time of year, I would counter with 18 months and see where that takes you but consider what your backstop position would be ? Would you accept for example 12 months with paid leave out to end September to go now*? You would be on the books and being paid until then, the redundancy payment would kick in, end September. The only issue would be if you were immediately offered a new role and they were not prepared to wait until then.

*Assuming recruiters are making positive noises.

Absolutely, but I know I’m highly employable and could probably get a new role as a promotion within 3 months so I wouldn’t even hesitate.

I think once it reaches a stage where your employer offers you a settlement and you accept that the relationship has broken down it has reached a stage where staying put is not really an option unless you want every day at work to be miserable and risk your employer finding another way to get rid of you anyway.

You have to take it but you can get more than a year's salary. That's their first offer.

I would without giving it any thought. But my circumstances are such that I wouldn't need to find another job before the money runs out - I'd like to, but there wouldn't be any pressure.

When can you claim your pension?

It doesn’t sound like there is genuinely an option to stay as they want you out so you may as well leave with a payment. Do what you can to reduce expenses as you may be looking for a while.

This! Leaning is your best bet in these circumstances. Take the money, be happy and never look back!

Yes, I've recently taken a settlement for just three months pay plus a tax free lump sum equivalent to another two months. I'd only been there for 16 months. This is much more then I'd get under redundancy. If relations have broken down then why stay. You have a year in which to find work either salaried or freelance. In my case I'm trialling freelance and it's looking ok so far. I think you'd be well placed to try similar.

Yes. They will get rid of you if you don’t and you’ll get less money AND you won’t have a fudged positive reference to take with you. Negotiate the reference. Let it be agreed that you resigned to have a sabbatical or some such bullshit

I did, five years ago. Scary at the time, but it’s worked out great for me.

How much of a choice is it op? Is staying an option realistically. They clearly want you gone, but how much will they pay for the privalage of making it go away fast v just managing you out for free over a slightly longer period.

No way!

There's some poor HR/employment law advice on here. Make sure to get a decent solicitor.

As part of a settlement agreement, you can receive an ex gratia payment, of which up to £30k is tax and NI free and anything above £30k will be subject to tax and NI. Ex gratia is a good will payment that is above your contractual obligations, such as notice pay and holiday pay.

I would seriously consider the offer, being on the other side of HR it sounds like if you dont accept the offer they will manage you out anyway. However, I would go in with a counter offer and ask for more money. A decent solicitor can look at your circumstances and what's happened to cause the relationship breakdown and help you formulate and negotiate the counter offer.

Well, first offer in writing comes at about 10 months. I'm going to reject it. Busy applying for other roles.

Unless you have something significant over them, I’d say 10 months is very generous and I’d be considering it.

Granted I’m in the private sector, fairly cut throat, and so my perspective is different. By way of example our standard UK settlement exit is 3 months. If it’s a generous one with some kind of claim we’d like to avoid we might get to 6 months. Our US C levels get 6 months + shares + bonus. C minus one gets 3 months + shares + sometimes bonus.

If this is simply a case of broken down relations I would be wary. However your lawyer will advise based on your specific situation.

What is your back-up plan if they won’t move from 10 months, are you still actively working there, can you actually just carry on?

I would OP. Life is too short to be miserable. I walked away from a toxic SLT role with nothing to go to. I had work coming out of my ears within three months and now have a permanent SLT role that I really enjoy with a great team.

"Settlement agreements are worth understanding properly before you decide. A year's salary sounds good but there are things to check — whether the payment is tax free (first £30,000 is), whether the reference terms are clearly written into the agreement, and whether there are any restrictive covenants that could affect future work.
You also have the right to take independent legal advice on the agreement and your employer should contribute to those costs — this is actually a legal requirement for the agreement to be valid.
ukworkrights.co.uk has a free settlement agreement checker that covers exactly this 👍

If I find a new role in the next few weeks, I'd take the current offer and run. With an offer of 12 months I'd go without another role in place I think.

Agreement is with the solicitors, feeling scared. Didn't get a role I was hoping for, pipped at the post by internal applicant, but hopefully being short listed for another role next week. I am bricking it, but I know staying isn't an option and this is a great opportunity if I'm brave enough to embrace it.

It’s really really tough to get a job over 50. I couldn’t.