Redundancy/Compromise agreement
Discussion
There's a strong possibility I'm looking at redundancy/compromise agreement, and I wanted to see if you had any advice for me.
Background:
Have been employed in a significant role at my current place for 3.5 years. The last 2 years have been particularly challenging, culminating in me running 5 departments with no extra money. I did raise this directly with both MD & CEO on several occasions.
There had been discussions about me moving into a different role, focusing upon operations, which I was happy to do. This took place in September/October 2016. At the time I asked how I could still get a bonus, and I was told by the MD that he would "work something out". To be clear, I have worked with the MD at a previous company and had no reason to doubt his word.
Fast forward to 1st November 2016, my payslip came with £0 bonus. I queried this with him, and was told that moving into an Operations role meant that there was no bonus. I stated at the time that it felt asthough I was being managed out, especially as the bonus has been removed, when he indicated it wouldn't. Ultimately he was vague in his response, but stated no.
I decided not to pursue this with HR, as I would start looking for another role in the new year, and simply didn't want the added hassle.
Two weeks ago I had a 1-2-1, first in 6 months, at which point the MD states that we haven't communicated over the past 6-7 months, and he wanted to get our cards on the table. He mentioned that he's not getting value out of me, to which I agreed, as he has me doing a role that doesn't require much input, and I'm running a department, of which I have no in-depth technical knowledge about what they do, and it is of little interest to me/outside of my skill set. This I might add has been made clear from day 1.
He basically said that if he's not getting value, then he has to look at redundancy/compromise, but before he does that, we should both think about the options.
What I was hoping to gain, were thoughts on the following:
1) From what I've described, would you consider, or think that a tribunal would consider I have been managed out of the business, especially as I lost the chance to earn a monthly bonus without any form of consultation. Indeed I found out after the event, eventhough he advised me that he would "work something out".
2) I am on a 3 month notice period, and ACAS have advised me that I should receive the 3 months + redundancy. I also have a bonus, which has already been secured, but is payable on 1st October, so do you think it is possible to receive: 3 months + stat redundancy of 4 years + bonus as my package.
In honesty, I am ready to leave, and providing I get a fair package, I don't have a problem and don't want to cause waves, so securing the right and fair package for me is critical.
Your help/advice is much appreciated.
Background:
Have been employed in a significant role at my current place for 3.5 years. The last 2 years have been particularly challenging, culminating in me running 5 departments with no extra money. I did raise this directly with both MD & CEO on several occasions.
There had been discussions about me moving into a different role, focusing upon operations, which I was happy to do. This took place in September/October 2016. At the time I asked how I could still get a bonus, and I was told by the MD that he would "work something out". To be clear, I have worked with the MD at a previous company and had no reason to doubt his word.
Fast forward to 1st November 2016, my payslip came with £0 bonus. I queried this with him, and was told that moving into an Operations role meant that there was no bonus. I stated at the time that it felt asthough I was being managed out, especially as the bonus has been removed, when he indicated it wouldn't. Ultimately he was vague in his response, but stated no.
I decided not to pursue this with HR, as I would start looking for another role in the new year, and simply didn't want the added hassle.
Two weeks ago I had a 1-2-1, first in 6 months, at which point the MD states that we haven't communicated over the past 6-7 months, and he wanted to get our cards on the table. He mentioned that he's not getting value out of me, to which I agreed, as he has me doing a role that doesn't require much input, and I'm running a department, of which I have no in-depth technical knowledge about what they do, and it is of little interest to me/outside of my skill set. This I might add has been made clear from day 1.
He basically said that if he's not getting value, then he has to look at redundancy/compromise, but before he does that, we should both think about the options.
What I was hoping to gain, were thoughts on the following:
1) From what I've described, would you consider, or think that a tribunal would consider I have been managed out of the business, especially as I lost the chance to earn a monthly bonus without any form of consultation. Indeed I found out after the event, eventhough he advised me that he would "work something out".
2) I am on a 3 month notice period, and ACAS have advised me that I should receive the 3 months + redundancy. I also have a bonus, which has already been secured, but is payable on 1st October, so do you think it is possible to receive: 3 months + stat redundancy of 4 years + bonus as my package.
In honesty, I am ready to leave, and providing I get a fair package, I don't have a problem and don't want to cause waves, so securing the right and fair package for me is critical.
Your help/advice is much appreciated.
If you've only been there for 3.5 years your Statutory Redundancy Pay entitlement is 3 years, not 4. Notice pay + value of benefits for your notice period + SRP would be the absolute minimum, then add a figure for what you think is fair for them to break your contract given the circumstances. I'd be asking for your current bonus up to last day of work + the bonus you were supposed to receive last year (if I read your post correctly) and maybe your weekly salary x2 for every year of service (example, but up to you). If the company has an established redundancy process they may also offer fringe benefits, i.e. outplacement support and recompense for lawyer's fees - make sure to check.
Also, they are no longer referred to compromise agreements; Settlement Agreements is the terminology that will probably be used, just incase it comes up and you didn't know about it. Same theory, different name.
ETA: If they do start to play hardball with you, don't hesitate in taking it to HR under the grievance procedure to make sure your exit is handled correctly. Both sides will probably want this to be as smooth as possible; just make sure you get a fair deal.
Also, they are no longer referred to compromise agreements; Settlement Agreements is the terminology that will probably be used, just incase it comes up and you didn't know about it. Same theory, different name.
ETA: If they do start to play hardball with you, don't hesitate in taking it to HR under the grievance procedure to make sure your exit is handled correctly. Both sides will probably want this to be as smooth as possible; just make sure you get a fair deal.
Edited by parabolica on Wednesday 26th April 16:09
I've been both sides of the fence in this scenario.
Best advice, if it is compromise/settlement don't focus on weeks/days etc calculate an amount you want or would be willing to settle for. Add to it and offer it as your demand to leave. They will counter and you will meet somewhere in the middle near what you wanted. Time and cost of formal process will put the employer off arguing over a few grand.
They should cover legal costs.
Re bonuses. No chance. Non contractual (I assume) and you are offering only hearsay, but you can factor bonus (if you think you deserved one) into your total figure as per the above.
Best advice, if it is compromise/settlement don't focus on weeks/days etc calculate an amount you want or would be willing to settle for. Add to it and offer it as your demand to leave. They will counter and you will meet somewhere in the middle near what you wanted. Time and cost of formal process will put the employer off arguing over a few grand.
They should cover legal costs.
Re bonuses. No chance. Non contractual (I assume) and you are offering only hearsay, but you can factor bonus (if you think you deserved one) into your total figure as per the above.
It is normal, but not obligatory, for an employer to contribute a nominal sum, maybe 500 to 1000 quid, towards the employee's legal adviser costs. Ask the employer to do so.
Contact Marty Byrne at Oxford Employment Law, or David Ludlow at Barlow Robbins. They are experts in exit negotiations. Take their advice, not the advice of random blokes on a car forum.
Contact Marty Byrne at Oxford Employment Law, or David Ludlow at Barlow Robbins. They are experts in exit negotiations. Take their advice, not the advice of random blokes on a car forum.
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