Settlement Agreements / Golden Farewell
Discussion
If she is being compromised out, then they are going out of process in order to exit her from the business.
This means paying her off which, as you rightly summise, is negotiable.
Starting point for this is usually 6 months salary. You have an offer of that, plus notice period, so they're not a million miles out.
What are your expectations? The future profit of the business is largely irrelevant when negotiating such a deal.
Consider what happens if you refuse. How strong a position is she in? How clever are they? How have they dealt with others in similar scenarios (if applicable)
At this level, it's eminently possible to 're-structure' the team leaving her position redundant but only she will know how feasible that is. If she's at that level, I would imagine she's seen or dealt with this internally before?
This means paying her off which, as you rightly summise, is negotiable.
Starting point for this is usually 6 months salary. You have an offer of that, plus notice period, so they're not a million miles out.
What are your expectations? The future profit of the business is largely irrelevant when negotiating such a deal.
Consider what happens if you refuse. How strong a position is she in? How clever are they? How have they dealt with others in similar scenarios (if applicable)
At this level, it's eminently possible to 're-structure' the team leaving her position redundant but only she will know how feasible that is. If she's at that level, I would imagine she's seen or dealt with this internally before?
Muzzer79 said:
If she is being compromised out, then they are going out of process in order to exit her from the business.
This means paying her off which, as you rightly summise, is negotiable.
Starting point for this is usually 6 months salary. You have an offer of that, plus notice period, so they're not a million miles out.
What are your expectations? The future profit of the business is largely irrelevant when negotiating such a deal.
Consider what happens if you refuse. How strong a position is she in? How clever are they? How have they dealt with others in similar scenarios (if applicable)
At this level, it's eminently possible to 're-structure' the team leaving her position redundant but only she will know how feasible that is. If she's at that level, I would imagine she's seen or dealt with this internally before?
Removed/edited by OP for potential legal reasonsThis means paying her off which, as you rightly summise, is negotiable.
Starting point for this is usually 6 months salary. You have an offer of that, plus notice period, so they're not a million miles out.
What are your expectations? The future profit of the business is largely irrelevant when negotiating such a deal.
Consider what happens if you refuse. How strong a position is she in? How clever are they? How have they dealt with others in similar scenarios (if applicable)
At this level, it's eminently possible to 're-structure' the team leaving her position redundant but only she will know how feasible that is. If she's at that level, I would imagine she's seen or dealt with this internally before?
Edited by Hobo on Friday 26th November 09:28
Hobo said:
I have no doubt she can go straight into another role, but something just doesn't sit right with me about the amount of work she has put in over the past few years just to walk away with a few months pay in leiu.
Which brings home the poinjt that if you believe you are a genuinely valuable employee you need to negotiate for a longer contract/notice period BEFORE circumstances change.A 12 month offer to leave a 6 month contract at £100k (presumably including 12 months of other benefits as well as headline salary) is very unlikely to be bettered by trying to make an unfair dismissal claim.
Take the money and run.
Good people find new jobs pretty quickly. If she can do it without a break that's a huge cash windfall. Nice.
matrignano said:
Some companies offer 1 month redundancy for every year of service, plus notice period
Is that reasonable in her industry?
Honestly not sure. All I know is the profits they are currently making due to Covid are absolutely obscene. Based on this, and they clearly want her to leave quietly then the offer just doesn't seem great. They are basically offering;Is that reasonable in her industry?
1. 6 months notice period
2. 6 months pay as 'ex gratia' payment
There is no mention of the bonus she would have been eligible for under a very well defined scheme.
Personally, I'd be trying;
1. 6 months notice period
2. 12 months pay as 'ex gratia' payment
3. Honouring of bonus payment due early 2022
On the basis of agreement then I'd be saying;
a) leave quitly
b) sign NDA or relevant confidentiality agreement
c) offer a 'non derogatory comment' clause (although she isn't that type of person)
d) offer to be contactable by email/phone for anything they may require assistance with free of charge for 3 months, and then at an agreed day rate thereafter (as there are significant works which she did, which others may not fully understand)
e) a 'non compete' will not be entertained, although agreement made not to poach staff etc
Removed/edited by OP for potential legal reasons
Edited by Hobo on Friday 26th November 09:28
Hobo said:
Honestly not sure. All I know is the profits they are currently making due to Covid are absolutely obscene. Based on this, and they clearly want her to leave quietly then the offer just doesn't seem great. They are basically offering;
1. 6 months notice period
2. 6 months pay as 'ex gratia' payment
There is no mention of the bonus she would have been eligible for under a very well defined scheme.
Personally, I'd be trying;
1. 6 months notice period
2. 12 months pay as 'ex gratia' payment
3. Honouring of bonus payment due early 2022
On the basis of agreement then I'd be saying;
a) leave quitly
b) sign NDA or relevant confidentiality agreement
c) offer a 'non derogatory comment' clause (although she isn't that type of person)
d) offer to be contactable by email/phone for anything they may require assistance with free of charge for 3 months, and then at an agreed day rate thereafter (as there are significant works which she did, which others may not fully understand)
e) a 'non compete' will not be entertained, although agreement made not to poach staff etc
This would be increasing the overall sum from circa 100k to around 170k, and I'd be proposing payment being 30k one off payment as understand this can be tax free, with the balance paid directly in to her SIPP.
Very good reasoning1. 6 months notice period
2. 6 months pay as 'ex gratia' payment
There is no mention of the bonus she would have been eligible for under a very well defined scheme.
Personally, I'd be trying;
1. 6 months notice period
2. 12 months pay as 'ex gratia' payment
3. Honouring of bonus payment due early 2022
On the basis of agreement then I'd be saying;
a) leave quitly
b) sign NDA or relevant confidentiality agreement
c) offer a 'non derogatory comment' clause (although she isn't that type of person)
d) offer to be contactable by email/phone for anything they may require assistance with free of charge for 3 months, and then at an agreed day rate thereafter (as there are significant works which she did, which others may not fully understand)
e) a 'non compete' will not be entertained, although agreement made not to poach staff etc
This would be increasing the overall sum from circa 100k to around 170k, and I'd be proposing payment being 30k one off payment as understand this can be tax free, with the balance paid directly in to her SIPP.
Asking for a bit of extra money, and offering something back in return.
Jasandjules said:
Don't ask, don't get.
They have already offered what would be considered quite generous and as has been noted above absent discrimination or whistleblowing in fact more than the cap on awards in Tribunal.
BUT until they say No, you keep asking....
But the tribunal cap is just for the non notice element, so in reality they are offering around 50k with a tribunal cap of 90k.They have already offered what would be considered quite generous and as has been noted above absent discrimination or whistleblowing in fact more than the cap on awards in Tribunal.
BUT until they say No, you keep asking....
There is also an agreed bonus which may form part of this 50k, thus reducing the sum to nearer 30k, with a tribunal cap of 90k.
To me it’s a gamble worth taking ie settle for 30k with a number of ‘agreements in writing’ or get 0 to 90k.
I’m don’t really look at it from our point of view, I’m more looking at what I’d be thinking if I were them. Would I really want a potential extended employment, tribunal and a pissed off vocal ex director for the sake of 50k in what is a company which turns over 100s of millions and makes fantastic margins ?
We’re are in a position where the monies are whilst not insignificant, not the be all and end all.
edc said:
You might want to do some home work into annual allowances for pension and even perhaps lifetime allowances if she is a high earner and is about to boost the pension significantly.
Appreciated. AnnualAllowance being 40k and can go back to top up the last 3 years contributions would mean probably a larger upfront payment required based on my thoughts on package.
Not a million miles away though.
Frankly, they want her gone or wouldn’t have made the offer. Unless she has any protected characteristics then it’s a relatively generous offer.
Do her employment terms state anything in respect of redundancy in addition to notice period?
They should be making redundant with associated compromise agreement, which makes the 30k tax free.
Perhaps ask for value equivalent to bonus, an amount towards legal costs, plus pilon.
Then get a decent lawyer to look at it - Rebecca Fox at VWV in Watford is excellent.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff