Compromise Agreement
Discussion
General thoughts on this. Is it wise to ask your employer before for a severance package before redundancy i.e. is it unprofessional or simply bad negotiating tactics? We're talking about a small/medium sized company and not a blue chip. Just to add I don't want to leave, but if they want me to go (can't figure this bit out yet) then I would be happy with X months pay and leave quietly.
fido said:
General thoughts on this. Is it wise to ask your employer before for a severance package before redundancy i.e. is it unprofessional or simply bad negotiating tactics? We're talking about a small/medium sized company and not a blue chip. Just to add I don't want to leave, but if they want me to go (can't figure this bit out yet) then I would be happy with X months pay and leave quietly.
What is your objective in doing this?Why can't you disclose your hand if and when a voluntary redundancy scheme or potential cuts come on the horizon?
edc said:
What is your objective in doing this?Why can't you disclose your hand if and when a voluntary redundancy scheme or potential cuts come on the horizon?
There is no HR (HR person left, not sure if she got fed up or was fired)! Therefore I am not sure whether any negotiations will be with a director. My hunch is that they want me to go voluntarily (less hassle for them) but as I have worked over at X for over 3 years I would like a severance package.I have done this successfully in the past but it's a very delicate balancing act. There are a number of factors to take into consideration. What's your relationship like with the decision maker? Can you trust him/her? What's your worth to the company? What's your cost to the company?
So, if you can safely drop hints to the decision maker that your are open to a deal the best case is that he/she knows you won't makes a fuss and will probably be flexible on leaving arrangements. If you are an "expensive" employee on a high salary with good benefits then losing you might save two lower cost employees and create opportunities for promotions etc. If you are a valued employee with specialist skills/knowledge then your chances of striking a deal may be slim and if the decision maker is not trustworthy you risk giving the wrong message. Also a compromise agreement incurs legal costs on both sides. Do you know what the redundancy deal is worth?
In my case I worked for a large company that was re-structuring and a fund had been set aside for redundancies. Lots of people tried it on but there seemed to be unwritten policy that if you had been a loyal employee who had put time in and delivered consistently then you went to the head of the queue. In other words a form of bonus if you wanted out.
So, if you can safely drop hints to the decision maker that your are open to a deal the best case is that he/she knows you won't makes a fuss and will probably be flexible on leaving arrangements. If you are an "expensive" employee on a high salary with good benefits then losing you might save two lower cost employees and create opportunities for promotions etc. If you are a valued employee with specialist skills/knowledge then your chances of striking a deal may be slim and if the decision maker is not trustworthy you risk giving the wrong message. Also a compromise agreement incurs legal costs on both sides. Do you know what the redundancy deal is worth?
In my case I worked for a large company that was re-structuring and a fund had been set aside for redundancies. Lots of people tried it on but there seemed to be unwritten policy that if you had been a loyal employee who had put time in and delivered consistently then you went to the head of the queue. In other words a form of bonus if you wanted out.
You appear to be conflating a compromise agreement with exit negotiations. The compromise agreement would be a contract which sets out your payment to leave in exchange for giving up any rights to sue them....
If you simply think redundancies are on the cards, then you can inform them that if redundancies are coming up, in order to save them the costs of going through the exercise, you would accept voluntary redundancy...
Unless I have confused what you are asking that is!
If you simply think redundancies are on the cards, then you can inform them that if redundancies are coming up, in order to save them the costs of going through the exercise, you would accept voluntary redundancy...
Unless I have confused what you are asking that is!
I think the OP has made the distinction. The question is really whether he or she would be better off taking the initiative. In a large company redundancy terms are often public domain (within the company), or contractual, so you know what the fall back position is. Here the worst case could be statutory minimum which is meagre unless you have decades of service.
ChasW said:
If you are a valued employee with specialist skills/knowledge then your chances of striking a deal may be slim and if the decision maker is not trustworthy you risk giving the wrong message.
Thanks you've covered most of the points I was mulling over. It's a bit of a complicated situation. I would go if we could negotiate a generous payoff i.e. 6 months, but I feel that in every other case I should stay schtum. Just to add, I did not initiate this situation (intentionally at least) - some sort of politics and I got caught in the firing line. I can't trust anybody now that the HR lady has gone.Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff