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chris1982
Original Poster
60 posts
65 months
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Hi guys,
I need some advice on how to handle severance pay negotiations and get the best deal possible. My friend is currently going through a tough time at their company, they have basically being picked out as being a bad member of staff (even though they are ace at their job) as they don't fit and a couple of the senior staff doing this have taken their personal grievance out on them and are trying to push them out of the company (even though they havent actually done anything wrong)! The senior staff have being trying every way to force my friend out until recently my friend used a link to a senior member of staff and the tides have turned...they have now offered my friend a possible severance package.
The question is, they havent actually stated how much they are going to pay them and i was wondering how it is best to tackle it? How does severance work? How do you stop them from just not paying you? will they sign an agreement to pay it them?
Obviously dont want to go into much detail but has anyone got any helpful advice on this so they come out of an unfair situation with some positives.
Thanks in advance.
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davepoth
19,927 posts
68 months
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Your friend needs to be very certain of what's been said, and what's been offered. Chances are he's had a "without prejudice" discussion with HR, in which he has been offered a "compromise agreement", effectively a bribe to stop him from taking the company to an employment tribunal. Certainly it sounds like they could be scared about the risk if they haven't just binned him for "Some Other Substantial Reason".
He would do well to establish if he is on that track. If so then the agreement has to be approved by a lawyer, and the company must pay for your friend's lawyer.
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chris1982
Original Poster
60 posts
65 months
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Thanks for the help. The discussion of the severance pay was an "off the record chat" with HR and he is now wondering if they are actually going to pay them if they take the severance. They want to go and have an idea of what they want to leave but just want to go without too much s**t and just get out of there with the money.
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rog007
3,047 posts
93 months
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This is quite an interesting area that needs handling with care and consideration. Your friend certainly needs detailed advice that may best be given by his Union if he has one. If not, a lawyer experienced not only in employment law, but also experience of the sector would be advantageous. Whilst this is not an unusual practice, employer and employee deciding to go their seperate ways, the agreement has to be so tight as to ensure not only fairness (for both sides) of any compensation package, but also minimising any unintended consequences, in particular: impact upon reputation of both parties; agreement on what can be disclosed post-severence; how it can be packaged on the emoyees history record (CV); and affect on future employment in the same company (if things changed in the future; particularly important if the emoyer is one of only a few players in that industry). Good luck!
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GadgeS3C
1,955 posts
33 months
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davepoth said: He would do well to establish if he is on that track. If so then the agreement has to be approved by a lawyer, and the company must pay for your friend's lawyer. Good advice above but just to clarify - the company have to pay a reasonable amount towards the compromise agreement but not for negotiation and other advice. So your friend could end up paying something. Good overview at http://www.compromiseagreementslimited.co.uk/Ive not used these folks and I'm not recommending them - but the advice on the site is useful to read through.
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durbster
3,048 posts
91 months
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Obvious point I know but make sure he reads everything that's put in front of him, particularly minutes of any meetings. My last company said I'd stated things I quite clearly hadn't.
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chris1982
Original Poster
60 posts
65 months
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Thanks for all the advice guys, all very helpful. He has checked out that site and found a lot of notes and details that should help him. He has a meeting with them today and is hopefully going to put forward what he wants in terms of a 'compromise agreement' and will see what comes of it.
Fingers crossed it all goes as planned.
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chris1982
Original Poster
60 posts
65 months
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GadgeS3C said: Good advice above but just to clarify - the company have to pay a reasonable amount towards the compromise agreement but not for negotiation and other advice. So your friend could end up paying something. I think he found that he will probably have to pay around £500 for a solicitor to represent him and make it all legal...does this sound right? I doubt the company will pay for his legal representation if they are also paying him to leave but would be good to find out if he can get this covered. Thanks again guys
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edc
3,945 posts
120 months
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£250-350 is about the going rate for review ad validation of a straight forward case compromise agreement.
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GadgeS3C
1,955 posts
33 months
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edc said: £250-350 is about the going rate for review ad validation of a straight forward case compromise agreement. That's sounds about right for the agreement part. You could pay the same again if there is some negotiation etc. needed.
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edc
3,945 posts
120 months
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GadgeS3C said: That's sounds about right for the agreement part. You could pay the same again if there is some negotiation etc. needed. Which the company won't pay for. The agreement will be drafted with amount £X. It is then up to you to find somebody up to that level. If you find somebody more expensive by all means you can ask for more, just don't expect it to be forthcoming.
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chris1982
Original Poster
60 posts
65 months
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Thanks guys, will pass on the advice and hopefully he will get what he is happy with and can move on from what has been a terrible and stressful experience.
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