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Forced exit - very low settlement agreement compensation

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  • Forced exit - very low settlement agreement compensation

    Hello,

    My employer was bought back by a private equity firm and since then they have been pushing employees to resign in order to reduce head counts rather than doing costly redundancy plans (company redundancy policy is one month of gross salary per year of service).

    A few months after returning from mat leave and with an impeccable performance record (promoted every 3 years), I was given an underperforming performance review without any warnings. The review states that my work was very good but I completed less projects than others. My contractual bonus which I normally get if I achieve my objectives was cut and I received no inflation increase in salary. The description of “underperforming” does not represent at all my performance but the new company policy is to force all teams to give an underperforming rating to 15% of team members. I work with single men and when I returned from mat leave some of those men were based in Mumbai and doing insane hours 7 am to 11 pm!
    All my colleagues gave me good feedbacks and my manager didn’t seek the feedbacks from a colleague senior to me who I work very closely with on most my projects.

    Straight after the review I sent an email contesting it and showing point by point how my performance had actually been very good. I argued that the new company performance review process was unfair and discriminatory. I sent the email to my HR rep, my manager, and my manager’s manager.

    When I got back from mat leave, my manager knew that I was diagnosed with post-matal depression after giving birth. He also knew that it got worst in the following couple of months because of the stress the company was putting on me.

    After the performance review my mental health deteriorated and my relationship with the team was strained. My work was being ignored, my presence in meetings ignored, and I kept being paranoid about what everyone thought of my performance. I went on sick leave for a month after a panic attack following an argument with a colleague who didnt want to find himself in the middle of the dispute and told me he had no issues with my performance but didnt want to be bothered with my problems and that I should resign if I wasn’t happy rather than bothering colleagues with my problems.

    I came back to work a month after and I was ignored, my manager was very weird, no one had answered my email contesting the review, and I just couldn't cope with that kind of toxic environment. The GP put me back on sick leave with increased anti-depressor dosage.

    I received an email from HR to do an occupational health assessment which I refused as I had no trust in the company and their processes. My manager didn’t acknowledge my sick notes for the first few months. He didn’t contact me as he normally does to tell me he had cut my bonus. No one addressed my email contesting the review or the fact my depression got worst because of a toxic work environment.

    Finally once I reached the end of my paid sick leave I was contacted by my manager and HR for a medical capability investigation. My union rep accompanied me in the meeting and advised I accepted the occupational health report. I still don’t see what it added compared to my GP but I followed the advice and during the capability investigation meeting I accepted the occupational health referral.

    I sent an email to my HR rep asking that the company extend my paid sick leave for several reasons including the fact that I wasnt able to recover during the months in sick leave because I had to look after my kids during the covid lockdown and couldnt continue therapy or see supporting groups. The company also contacted me really late in my paid sick leave period so the occupational health report wouldn't be available for another 10 days. I also said that I had done some work when I could during my sick leave to help out colleagues so the company could show the same level of flexibility. The company also didn't answer my emails and concerns and was responsible for putting me in this situation. My HR rep ignored my email and I never got a reply.

    The occupational health report said I was unfit for work and recommended a stress assessment so the company addresses the work related issues that were deeply affecting my mental health. A week after reception of the report, I still didn't get any answer from the company.

    They have now offered a settlement agreement that is ridiculously low compared to my redundancy terms. They also offered a settlement agreement to a friend of mine right before she returned from mat leave that corresponded to the terms in her settlement agreement (she had many years of service, like myself).

    I find myself in poor health, unable to find another job until I get better and gain back confidence, in the middle of the worst economic crisis in the 21st century. I won’t be able to get another job easily and I am devastated to be treated that way by my employer after 12 years working there.

    They push the most fragile people out by creating a terrible work environment so they resign and the company can get away with not giving them the contractual compensation they would get under redundancy.

    I said I expect a settlement agreement with the same terms as my redundancy rights but they say this is not a redundancy and offer 1/4th of compensation pay.

    I am so tired I just want this to end but I need the money for my family once I’m out of a job. I also can’t believe the treatment I get while my friend got a settlement agreement under her redundancy terms just a year ago.

    Does anyone have any advice on how I can pressure them to offer redundancy terms in the settlement agreement?

    Thank you very much.

    Best Regards;

    Tags: None

  • #2
    In negotiating a settlement agreement are you being asked to sign a formal Settlement Agreement (SA) document which gives up any rights you have to make a subsequent claim against your employer?

    If so, then part of the process of signing a SA is that you will be required to take independent legal advice from an employment law specialist. Part of their job is to ensure that the "compensation" being offered is at the correct level given the circumstances and the rights that you are giving up to bring any further claims. If they go not feel you are being offered enough "compensation" then they would have to negotiate with your employer to increase the sum being offered.

    Most employment advisers have a standard payment for providing this advice which is between £250 and £500 which is generally the rate that the employer offers to pay. This is usually enough to cover the costs if the SA is straight forward and there is not much back and forth negotiating terms on your behalf.

    In your case if your employer is asking for you to sign a Settlement Agreement, I would suggest engaging an employment law advisor and explain the situation, they should also ask for a copy of your contract of employment. They can then best advise as to what you should reasonable expect to receive and negotiate accordingly.
    If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

    I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

    I do my best to provide good practical advice, however I do so without liability.
    If you have any doubts then do please seek professional legal advice.


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