Settlement Agreement

[Sm1]

Hi, bit of advice required.
What settlement figure would you be looking for for 20 plus years service and 40k salary?

[ostell]

Bit more information would help

[Sm1]

Sorry I’m new to this. There’s no disciplinary, absence, or performance issues on record. This came from a without prejudice meeting.

[ostell]

So what are you being asked to do?

[Sm1]

They basically just said that it was with a view to terminating my employment. I said what are the reasons and they just implied they didn’t feel I was committed to the role but wouldn’t go any further or give details. To me they just want to force me out.

[ostell]

So what are they offering? Are they going to make an offer to make you redundant?

I know when I had a similar thing I was offered redundancy with £40K+ and, I think 2 months PILON and an enhanced pension. I had to pay tax on my redundancy pay! That was 20 years ago with a lower salary than you gave

[Sm1]

They offered 15k which I obviously know is a ridiculously low offer

[ULA]

Are they, as part of this process, asking you to sign a Settlement Agreement?

[Sm1]

Yes they’re.

[ULA]

In which case as part of that you will need to take the settlement agreement (SA) and a copy of your contract to an employment law adviser. The role of the adviser is understand the circumstances that has led to the SA, look at things like your length of service, salary etc and advise you on whether the sum being offered is adequate compenstation for the situation and for you to give up your rights to bring an employment tribunal claim. You are effectively giving up this right by signing the SA. If your adviser does not think the sum being offered is enough then they should negotiate with your employer on your behalf.

Your employer is responsible for making a contribution for the fees for the adviser, typically they are in the region of £350-£500 + VAT depending on the complexity of the situation.

[Sm1]

Thank you