Termination Clauses In Employment Contract

[Dan69]

Hi,

New here, but could really do with some advice on this.


I am about to start a new job and having read the contract have come across these two paragraphs in the "Termination Without Notice" section.

"is declared bankrupt or makes any arrangement with or for the benefit of his creditors or has a county court administration order made against him under the County Court Act 1984;"

"becomes of unsound mind (which includes lacking capacity under the Mental Capacity Act 2005), or a patient under any statute relating to mental health;"

My situation is that I currently have a debt management plan and I suffer from depression (have been on medication for about 18 years).

Do I say something or not?

The role is not finance related is simple IT so do not understand the financial one at all and I thought the idea of sacking someone for mental health issues could be classed as discrimination. If I say something and they don't want me then I am stuffed and if I don't say anything but they find out I could also be stuffed.

Any advice gratefully received.

Dan

[Amethyst]

Is the IT job in a financial or legal organisation ?
I completely understand your concerns over those clauses - did you have to complete any financial or medical declarations on application / during the acceptance process ?
Ula

[ULA]

What is the seniority of the position you have applied for?

[Dan69]

Hi both,

Thanks for the replies.

Amethyst No it's not in the financial industry or in a legal organisation. They provide specialist software (but not for either of the aforementioned companies).
Nope, no financial or medical questions have been asked.

Ula It's senior, but not in the management sense. I have a broad experience and knowledge and it's that I've been employed for, I won't be line manager for anyone.

Dan

[m3tro]

Hi DAN69,

There is not really enough information, but based on the following statements:

"is declared bankrupt or makes any arrangement with or for the benefit of his creditors or has a county court administration order made against him under the County Court Act 1984;"

Your employer is entitled to hire employees who have good credit. I am not sure what sector you are in, but a good record to them can infer that the person is of a good character.

However, I don't think the wording is clear enough. What does the preceding statement say? Do they reserve the right to terminate or will they terminate?
"Is declared bankrupt...". If this is not the case, then I would not be too worried, as you have a debt management arrangement in place. "...makes any arrangement with or for the benefit of his creditors".

It says "makes" not "made". In theory, they would have done a credit check before offering you the role. They could still check during the probation.

In terms of the administration order, here is a definition https://www.citizensadvice.org.uk/de...tration-order/


"becomes of unsound mind (which includes lacking capacity under the Mental Capacity Act 2005), or a patient under any statute relating to mental health;"

Although you say that you suffer from depression, that does not mean that you are of an "unsound mind". The term is vague, but it states, "becomes",not "is". The references to the Mental Capacity Act etc are too broad. It would be discrimination for them to terminate you on that basis. Were you unable to perform your duties, your new employer would need to perform an occupation health assessment, and see whether you are still suited to the role. You have what is called a 'protected characteristic' and you could sue them for disability discrimination, if they were to immediately terminate your contract from day 1.

After you start the role, ask HR for the medical declaration form. If they do not have one, then send a PRIVATE and CONFIDENTIAL letter to HR. As your employer, they have a duty of care, and need to support you for Health and Safety reasons. Where required, they could make reasonable adjustments to support you. I have a new apprentice and she informed them of her severe depression and anxiety after she started the job. The employers, including the line managers have been tremendously supportive.

From the financial point of view, if you are part of an IVA or have a CCJ, they could in theory terminate the contract. I would not declare anything as they have not asked you, plus they can check the public records. The only thing here is to have a contingency plan in the event of termination. You could consider, freelancing if all fails

In a previous job, I had similar aggressive terms in my contract, I found that they used a template which was never really applied. Also, years ago, I worked for HSBC and they had a similar prohibitive clause. They did a search and found that I had a CCJ, but this did not stop them from offering me the role as I was working in IT.

I hope this helps.