Previous employer threatening legal action

[andyc1980]

Hi All,

I was hoping for some advice on the situation I find myself in.

I had worked for me previous employer for ten years, occupying various roles and eventually in a senior role, during the last year of my employment I had a relationship with a colleague that caused the breakdown of my marriage and obviously had an effect on my work performance.

It culminated in me attempting to commit suicide as I could see no other way out at the time, luckily I was found in time and my family forced me to get medical attention and I was signed off work suffering stress anxiety and depression.

My employer was aware of the situation, and the fact that I had attempted to commit suicide.

Whilst absent from work under medical advice, after two weeks I was asked by the HR manager to attend work to meet with her and the sales manager, I thought I was attending a welfare meeting, however I was told when I attended that the managing director wished for me to resign and leave the business under a settlement agreement, this was clearly not optional.

I was then asked to attend again two days later to a meeting with the HR manager and the MD and a settlement agreement was tabled and I was told there was no way back for me, at the time I was suffering with my mental health and didn't have the strength to defend my position.
I was also told that I had to attend work the following day to train my former colleagues, 5 managers who where to take over various aspects of my duties, again I was still absent from work under medical advice due to my mental health but I was left with no option but to attend.

I receive the settelement agreement it offered around £15k in consideration and given that I didn't feel ready to work and it was clear I wouldn't be allowed to return to my job, and also although my contract had enhanced sick pay provisions the MD stated that I would only receive statutory sick pay, for financial reasons and for my own mental health it felt the right thing to do was to accept, I got a solicitor to read it and returned it.

My employer then recinded the settlement agreement, stating that there was an issue with my credit card bill and expenses and sent me a long list of expenses to exam claiming lack of receipts etc, I didn't have the strength to contest, I was called in again and told there would be an investigation and possible police involvement (I work in a sector that requires police clearance) I wa stold by the HR manager the best thing to do would be to resign, so I did.

I tried to call the MD several times but he didn't answer my calls, so I text him, thanked him for my employment and explained I had resigned and told him I didn't feel ready to take part in an investigation due to my mental state and said I hoped my performance would count for something and not just my recent performance whilst suffering a mental breakdown, and said I didn't feel ready mentally for work.
The MD emailed me and said he hoped that my agreement to pay the sums they felt where owed would help me keep my position in industry, this relates to the comments that they threatened to involve the police, I believe this to be undue influence, and economic duress as they knew I had no option but to sign as involving the police would effect my position and prevent me from gaining employment in my profession they also knew I didn't have the mental capacity to defend myself.

Then they refused my resignation stating I hadn't provided enough notice, even though they didn't want me to return to work! they wrote to me telling me I owed them £10k in training costs etc because I chose to resign! and then tabled another settlement agreement offering to accept my resignation and write off the training costs if I signed, so I took it to a solicitor he advised against signing because there was nothing in it for me but I just wanted out I couldn't handle the situation any longer. I didn't explain the situation to the solicitor fully as I just wanted to put the situation behind me and concentrate on rebuilding my life, I only had a short time with the solicitor as I had attended during my lunch hour with a new employer as I had to go straight in to employment because financially I have a family to support.

The settlement agreement contained some restrictive covenenants that appear to last 6 months, one being solicitation, I left the company 8 months ago they are now claiming that I have breached them within the six months and threatening legal action to recover the training costs that they say they wrote off, I never received any money from the settlement agreement just there acceptance of my resignation and writing off training costs I disputed. I don't believe I breached the covenants. However I want to question if given the information above I could argue I entered the settlement agreement under undue influence and economic duress as I needed to gain employment elsewhere as I had no income and they would not allow me to without signing, and they knew of my mental state, and the threat of police involvement they knew would damage my career, also they wouldn't provide a reference until I signed and I require a reference as part of security screening.
Could I argue the validity of the settlement agreement and pursue a case of constructive dismissal? and if so how would I do this?

There are other issues, the training costs they say I owed them because I resigned, the was no provision in the contract I signed to reimburse training costs, a year before I left the contracts got revised and restrictive covenants and a clause regarding training costs got added, I refused to sign this as I felt it was too restrictive and I was studying a degree at the time and knew that this new contract offered me no consideration, I refused during a management meeting and it was well known I hadn't signed this was known by the hr manager and the md, so can this clause be held up, they will argue through conduct I have implied acceptance, but had I if I made it so well known I didn't intend to sign?

They are also now claiming I took with me confidential information such as a database a claim I dispute as not true and they are threatening me with an injunction.

The company in the last twelve months I was there was struggling financially due to the overhead and I was one of the bigger earners, in the last few months of my employment the MD's son showed an interest in my role and started taking on some tasks and since I have left has taken on my role, I believe I was constructively dismissed to reduce the overhead and create an opportunity for the MD;s son.

After leaving I went to work for a company in the same industry they where aware of this, unfortunately after 6 months this company went in to administration, I left and with a need to earn a living setup my own company as I didn't believe the restrictive covenants still applied with six months having passed and this being the time stated in them.

In a bizarre twist my previous employer purchased the company I worked for that went in to administration, and I believe this to be why they are now unhappy because the company that went in to administration and ceased trading some of their clients are now trading with me, however these had not been clients of my previous employer and fall outside of any agreement with them.

The issue I have is I have a low income at present, I cant afford legal help, I don't know if I'm entitled to legal aid, the situation is extremely complicated and having the time to defend myself and work is difficult. I fear that my previous employer is trying to seek an injunction to cease me trading, recover the supposed debt of almost £10k and seek damages and leave me banjrupt and unemployable in this industry as financial screening is also part of the screening process.

I know its complicated and a long thread but any advise would genuinely be appreciated I have seven days to respond.....

There are other items that can support that this is common practice with how the MD treats people, he is proud of the fact he is considered a bully.

I genuinely don't know what to do and currently feel so down, I haven't slept in days due to worry and anxiety, I just want to put this period behind me but it seems that no matter what I do they wont allow it, almost like it is a game to them, 8 months on and I still feel I answer to them.

My main questions I suppose are:

1. Can I claim that the settlement agreement should be set aside on grounds that I didn't have the mental capacity, I was under undue influence and economic duress.
2. If the settlement agreement can be argues, how do I even go about this?
3. If the settlement agreement is set aside would I have a case for constructive dismissal?
4. What do I do if they seek an injunction, what happens?
5. What if they take me to a county court and win, I don't have the money to pay can they get the high court to enforce it and send bailiffs to take my belongings?
6. Would I be able to get financial assistance with my case as I cant afford a solicitor or does anyone know of a Liverpool based solicitor who could help?
7. Would my employment contract I didn't accept stand up and if so how long am I bound by it, I left 8 months ago?

I just need all this to end.

Apologies for the long thread, I just don't know where to turn.

[mariefab]

I'm not sure what they're suing you for.
Is it just the £10K training costs?

[andyc1980]

I'm not sure what they're suing you for.
Is it just the £10K training costs?

The first settlement agreement had consideration of £15k payment to be made to me, then after I said ok, they withdraw it claiming there was issues with my expenses they sent me a long statement detailing all credit card transactions since I had the company Credit Card claiming many receipts had been missing, bear in mind my receipts would normally be passed to accounts and the credit card was also used by others in the company.

At the time I didn't have the capacity to sit through and recall every item, and there was no set policy for credit card use or expenses, many people in the company with the MD's knowledge use the companies credit facilities to purchase items, often they only pay back the value less VAT and the company claims back the VAT despite it not being a company purchase.
Or on other occasions people have purchased items on the company account and paid the MD in cash giving him a small tax free income.
However because I wasn't able to identify every item they wrote to me claiming I had acted fraudulently and when I met with them they talked about police involvement.

As a solution I offered why not just take away what they believed I owed from the settlement figure but was told that that agreement was no longer on the table.
The HR Manager advised I resign and I actually wrote the resignation letter in her office, I did thinking that was the end of it, they then refused my resignation on the grounds of me not providing notice.
And because I resigned claimed that I owed them a sum for training which I believe was around £8000 and the rest was in relation to credit card purchases that I couldn't explain from a period spanning 18 months.

And so the new settlement agreement was drafted the only consideration was the waiving of the sum they believed owed.

I felt I had no choice but to sign, if I didn't sign the MD himself in an email said he hoped my agreement would help me keep my position within the industry I work in, and the HR manager was talking about police involvement, and made it clear that if I didn't sign I wouldn't receive a reference.
Additionally I couldn't remain absent through illness as the enhanced sick pay provision that was in my contract had already been withdrawn by the MD and so I was on statutory sick pay.

The training cost clause was in a contract I disputed and never signed, the employer was aware of my fragile mental state and knew that I couldn't afford to be out of work so had no option but to sign, at the time I was suffering with depression, anxiety and stress that only one month earlier lead me to belive that suicide was the only option.

They are now saying I'm in breach of the settlement agreement and are seeking immediate repayment of what they believe to be the debt.

And in the letter from their solicitor they say they are considering an injunction and go on to say that it will cost several thousands that they will look to recover from me.

[andyc1980]

Attached are the restrictive covenants that had been included in the settlement agreement.

I don't believe I have breached any, and in any case as six months have passed (I left 8 months ago) can they be held up?

(iv) is the only one that does not state six months but suggests that I shouldn't have any business dealings for an unlimited period of time with anyone who had business dealings with my previous employer in the 12 months prior to my departure, is this too wide to stand? and if I never had any material relationship with any of them would it stand anyway? as a senior manager I very rarely got involved with clients as I was in charge of operational matters, there is probably only a handful of clients that I dealt with.

The solicitor claims I have retained a database of information, I dispute this, but what can I do?

Financially I'm not in a great position having been on SSP last year, having marriage issues and this year my employer going in to administration owing me money, I cant afford legal help and fear that I will have to defend myself to my own detriment.

I'm now self employed, today I have got no work done as I;m sat panicking about this situation and haven't slept for days.

I genuinely would appreciate any advice or guidance, because of my job I have a small understanding of some contract terms but not enough to avoid getting myself in to an even worse situation.

Part of me feels like giving up and declaring myself bankrupt, I just feel like I cant win against them, their MD is a wealthy man and can afford to fight this case for little more than sport as he has a reputation of being somewhat of a bully, to paint a picture of his character I have other former employees who can confirm this is how he operates and I have emails from the HR manager who would email my personal account for fear of the MD reading her emails, she herself talks about leaving in the emails.

I find myself in an impossible situation, that I just cant see a way out of...….I feel so weak for just giving in and signing the settlement agreement but I genuinely thought that would be the end of it, I didn't eight months later expect to still have them pursuing me.

I feel silly posting on here because I know I probably sound pathetic, apologies.

[mariefab]

Do you still have a copy of your contract of employment?
Do you have a copy of the settlement agreement?

[andyc1980]

Do you still have a copy of your contract of employment?
Do you have a copy of the settlement agreement?

Hi, yes I still have the contract of employment that I signed and agreed to and I have a copy of the one I refused to sign, the one I signed didn't have restrictive covenants or a training costs clause.

I also have both copies of the Settlement Agreement, the one with £15k consideration and the one with the waiving of the supposed debt.

I also have a letter stating they are investigating what they believe to be my fraudulent conduct and the email from the MD saying he hoped my agreement would help me to keep my position in the industry, he did however mark this without prejudice.

Any help or advice would be greatly appreciated, I have been panicking about this situation for days now and was just beginning to get my life together, tomorrow I need to make an appointment with my GP as the situation is making me really poorly.

[andyc1980]

In an email from the managing director he wrote:

"I fully understand your position within the industry, and that it may be compromised by any further actions that the company take. Whilst I do have ultimate control, I have to take into consideration the future of the business and the views and opinions of the remaining managers within the company. Your offer of repayment of the monies now owed, will hopefully enable me to secure said position. "

Does this along with the threat of police involvement from the HR manager and the letter suggesting they believed I acted fraudulently, amount to undue influence and economic duress as I felt that I had no option but to agree as they intended in my opinion to otherwise try to damage my career and prevent me from earning a living, knowing that I had been absent through mental health issues and they had only paid me SSP despite me having enhanced sick pay provisions in my contract of employment.

Or is it simply a case that they win because I'm unable to afford a defence.

[mariefab]

1. When did they give you a copy of the second contract?
2. Did all the training take place after you were given a copy of the second contract?
3. Do you have anything in writing (either from you or the employer) showing that you refused to sign the second contract?

[andyc1980]

1. When did they give you a copy of the second contract?
2. Did all the training take place after you were given a copy of the second contract?
3. Do you have anything in writing (either from you or the employer) showing that you refused to sign the second contract?

1. Originally I received a copy of the proposed new contract February 2017, however their solicitor has sent me a copy that is dated June 2016 but signed by the HR manager 29th March 2016 and it is a draft I have never seen as the enhanced sick pay etc has been removed.

2. The training was a degree course, I said I was interested in gaining the qualification as my work was becoming more varied, I advised that if the company did not want to pay for it I would finance it myself but the company offered to pay, the course was in surveying practice and as a result of the training I managed to negotiate some large final account sums so the company benefited.
This is not a qualification that would benefit me elsewhere in my career path other than at my previous employer because I was made to get on with commercial management, I started the course before the training clauses had been added to the contracts. And after leaving I couldn't afford to complete the course, so I never achieved the qualification and so have nothing to show for the money they claim I owe them, whilst they benefited to the tune of £40k on a single contract because of the work we done on it.

3. Emails regarding my refusal to sign where from my company email, I have issued a SAR but it is unlikely I will get them, I have got emails from around the time the settlement agreement was being pushed stating that I never accepted the contract and stating that I had always disputed it, this was commonly known.

My former employer flaunts the law, they bribe senior professionals in other companies to secure works by sending them on holidays etc paid for by the company, a few years back they used the company credit card to pay for a holiday for a project manager and his wife of one of their clients in return for him signing of a fictitious account worth several thousand, they manufactured false invoices using a legitimate companies details to account for cash so they could pay some employees cash in hand, can I use any of this in building my case as to the character of the people I'm dealing with?

My fear is that they will falsify information and will because of their size win the case

[mariefab]

When did you start the training course?
Please just give me nothing but the date.

[andyc1980]

When did you start the training course?
Please just give me nothing but the date.

I enrolled in March 2016 and the course started in April 2016

[mariefab]

The reason for my questions is that I'm just trying to establish whether, or not, the employer complied with the strict criteria required for them to have ever had a legal right to recover the training costs.

You say that you first received a copy of the proposed new contract (introducing the training costs clause) in February 2017.
Does the date 2017 appear anywhere in this contract?
Do you have any other paperwork dated 2017 that accompanied this proposed contract? Perhaps something explaining why they were adding the clause?

What exactly do you mean when you say in post #9, "a copy that is dated June 2016 but signed by the HR manager 29th March 2016".

[andyc1980]

The reason for my questions is that I'm just trying to establish whether, or not, the employer complied with the strict criteria required for them to have ever had a legal right to recover the training costs.

You say that you first received a copy of the proposed new contract (introducing the training costs clause) in February 2017.
Does the date 2017 appear anywhere in this contract?
Do you have any other paperwork dated 2017 that accompanied this proposed contract? Perhaps something explaining why they were adding the clause?

What exactly do you mean when you say in post #9, "a copy that is dated June 2016 but signed by the HR manager 29th March 2016".

Apologies, with all the confusion I got the date wrong it was February 2016 I received it, I have just looked through what I have to hand, and below is an overview:

TRAINING COURSE: I enrolled March 2016

CONTRACTS:

15th August 2014: My original contract that I signed, did not have any restrictive covenants or training clause.

13th June 2016: This is a copy of the contract that has been provided to me by their solicitor, I have never seen this copy before and this has the training clause in but has errors such as the enhanced sick pay provision removed, and so I never would have accepted this contract as it offered no consideration to me. (13th June 2016 is the date on the front of the contract, the back page is signed by the HR manager and dated 29th March 2016, there is a clause that says the contract is effective from 29th March 2016).

17th February 2016: This is a copy that was sent to my home address at the time, this also shows an effective date of the 29th March 2016, and is signed by the HR Manager 17th February 2016. This one has the training clause added and the enhanced holiday provision in it, this was accompanied with a letter from the HR manager dated 17th February acknowledging that it was changed due to discussions during the management meeting, and requested I returned it by 26th Feb 2016, I didn't and I made it known verbally I didn't intend to do so (I still have both copies).
There are other errors in this contract such as my remuneration is stated as £45k per hour as opposed to per year, I never received another draft after this date, the one the solicitor sent me shows the rate correctly even though it was dated before this copy.

I never accepted this contract, and in relation to the training costs in any case I enrolled on the course before the effective date of the contract so is this applicable?

I really appreciate any guidance you can provide.

[andyc1980]

I have just found a letter from the MD dated 16th October 2017, I was absent due to mental health issues at this time, I attended the supposed welfare meeting on this date and this was the first I heard of them not wishing me to return, a couple of days later this letter arrived dated the 16th, in it the MD states that there was a breakdown in trust and confidence.

He goes on to say that in these circumstances one option is to offer a settlement agreement, and says if we are unable to reach such an agreement then the next step would be to investigate their concerns further and decide if disciplinary action is required, to me that is not an option, that to me says accept the settlement agreement or we will find a way to terminate your employment through the disciplinary procedure.

After withdrawing the first settlement agreement the HR manager suggested that anomalies in my expenses could warrant police involvement and then the MD via email suggests my position in industry could be compromised if I don't agree with them, all at a time when they knew I was struggling with issues in my personal life and struggling with my mental health and was on anti depressants at the time, a fact they where aware of, I genuinely do not feel I had any choice but to give in to their demands at the time.

[andyc1980]

I realise that there is a lot to read through here, but any advice would be greatly appreciated. I have had a look through and I cant see how they have calculated the sum they believed I owed them, should they of provided a breakdown of how the sum was calculated?

If they are seeking to recover the monies that the claim they waived, is this a penalty? and if so it enforceable?