Would this count as a compromise agreement?

[trixymalixy]

This is what my contract says about redundancy on maternity leave:

If you commence maternity leave during your notice period, remaining notice will be suspended at the time you begin your maternity leave and continue when you return.

There is also a PILON clause.

They are talking at the moment about terminating my employment when I go on maternity leave and paying me PILON plus my maternity pay plus my redundancy pay.

My question is whether this would count as a compromise agreement as there is no allowance for this in the contract and should they therefore be paying for a solicitor to look over any offer?

no, i think you'd need a separate compromise agreement if it's outside contractual practice.

Trixy

The employer doesn't have to offer a compromise agreement even if they are paying you more than you are either contractually entitled to or entitled under statute. The comp agt is there for their protection, to prevent you from bringing claims if it's properly drafted. So an employer that is paying a lot over the odds, even if it's truly ex gratia, might want a comp agt. So might one which has a generous redundancy scheme, or one that is worried that you have a claim and wants to settle it. It's the employer's choice to offer you a formal agreement - they could just agree to pay a sum without that protection if they felt like it or they didn't want to encourage you to take advice.

If there is a comp agt you have to get independent advice. Most employers will pay for that,or at least make a contribution to costs, but actually they aren't obliged to pay for the advice at all.

They wouldn't be paying what I'm contractually entitled to because I wouldn't be getting any of the benefits I would normally be entitled to while on mat leave.

At the moment they are saying that I would get my maternity pay, my PILON and my redundancy pay.

I wouldn't be getting my childcare vouchers, my healthcare and death in service benefit.

I thought if they were paying something different to what's in the contract then it was automatically a compromise agreement? It doesn't sound like that's the case?

They are closing the whole office so there is no question of the process being unfair.

I just want to get the maximum amount I can from them.

It is in my interest to take a lump sum rather than go on mat leave and then work my notice as there is a possibility that the company may go bust, so I am keen to get my money and get out.

I was just wondering as they are offering less than I would get if what is in the contract was followed then I should be getting legal advice?

No, it isn't automatically a compromise agreement. My experience is that companies will offer compromise agreements when the odds are about 50/50 at tribunal.

Could you negotiate?

I have already negotiated the pension payments I would have received while I was on my maternity leave, which they weren't going to originally offer me.

I was just wondering if I was doing the right thing or should be entitled to more so was considering taking legal advice on it.

I'll need to check my home insurance policy, but sounds like my employer don't have to provide this for me.

I don't have union representation.

What Tiger Driver said re: employer's protection. This could extend to legal advice, but a word of warning. Some solicitors will advise only on the compromise agreement itself. what you need to some sort of opinion as to the merits if you went to tribunal, opinion on whether it's sex discrim etc.

Why are they terminating your employment?

ilovemydog they are closing the whole office and moving the work down south so no grounds for a tribunal.

I was just wondering if because the contract says that my notice should be suspended till after maternity leave whether if they are terminating my employment when my mat leave starts that they should be paying all the benefits I would have been entitled to while on mat leave.

It's a strange thing to put in your contract I must say. There's certainly no legal obligation for them to compensate you for benefits you would be entitled to if you had remained employed. Benefits stop when your employment stops, unlike SMP which you remain entitled to.

But your contract does seem to imply that if you start your maternity leave after having been given notice of redundancy but before your employment actually ends, your employment won't actually end until you return, which would of course mean that you would be entitled to benefits for that time.

Those are very specific circumstances though - do they actually apply to you? Have you been given notice of redundancy and are working your notice period and starting your maternity leave during that notice period?

Flowery, I will be served my notice at the end of Jun and will go on maternity leave the very next day, so this will apply to me.

The PILON clause is my option and I have to request it before the end of my consultation period i.e. before they serve me notice.

The PILON statement is clear.

What I'm not so clear on is if they are paying me my maternity as a lump sum whether they are contractually obliged to compensate me for the other benefits I would be entitled to while on mat leave under the maternity clause in the redundancy agreement.