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Legal matters

Compromise Agreements/Settlements

22 replies

workplacehell · 14/03/2012 15:10

Looking for advice, ill try to summarise:

Numerous problems at work. Months upon months of informal negotiations to resolve all issues failed miserably (and can be evidenced).

Grievance submitted 8 months ago - eventual grievance meeting held - no outcome
Stage 2 grievance submitted 4 months - ignored
Further grievance submitted 3 months ago - ignored

All issues ongoing - substantial monthly unlawful deductions from wages, refusal to consider flex work (not rejected, just ignored), Disability Discrimination (backed up by GP and OH - their recommendations completely ignored), Indirect Sex Discrimination, Bullying from management after submitting grievance.

They are not actually disputing much (if any) of this - I have substantial written evidence of all of it. They have also admitted that there has never been an issue with any of my work. I have had numerous managers and things just drag on/get lost in the system.

Massive company. Masive HR department.

Im in a large union. I wanted to go to Tribunal. Union reluctant as 'can take years' and I need to demonstrate I have explored all avenues to resolve issues. I rather suspect it is to do with the expense.

I feel I have explored all avenues. I have gone past line management, Heads of Department, Heads of HR and beyond. All in writing. I have chased outcomes to grievances and nothing - just keep geiing fobbed off - 'they are investigating'.

HR have recently made some mumblings and Union seem keen. No figures have been discussed. Union waiting to see what opening offer is and will then negotiate.

I have been given no idea on what would be accpetable. I have been off work with workplace stress and I am on medication for this now. Could this also be classed as some sort of personal injury? this is obviously going to have an impact on my health record when I am applying for a new job.

I feel like they are just going to try and pay me my notice period in full and not much else. In this economic climate it could take me ages to find a similar job and I feel I should be compensated for this in addition to the discrimination I have faced and which they are not particularly disputing - 'not intentional' i think was the phrase used.

Any advice welcomed.

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olgaga · 14/03/2012 15:25

I would wait and see. If a negotiated settlement can't be agreed, TU's will normally refer a case to their solicitors for a view on likely success first. If it's a large TU it may be a firm like Thompsons who deal with their work and they're very good.

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workplacehell · 14/03/2012 15:42

Thanks olgaga.

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prh47bridge · 14/03/2012 17:42

You may already know this but the basic idea with a compromise agreement is that they offer you some money in return for which you agree not to take any legal action against them. If they only offer to pay your notice period there would be no value to you in signing the agreement so you should refuse.

Note also that a compromise agreement cannot be enforced against you unless you have received proper legal advice. It is therefore normal for the employer to pay your reasonable legal fees.

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marmiteonmykeyboard · 14/03/2012 18:17

Thinking of you.

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workplacehell · 14/03/2012 18:41

Thanks Marmite!

Thanks Prh47bridge - yes i've looked them up so I know this - I cannot see any benefit to me (although they havent made an opening offer yet so I may be surprised).

I cant fathom what "exhaust all options" before tribunal means when I have literally gone through every informal and formal channel available and have extensive written evidence to back me up. They are not even disagreeing really, just saying they didnt mean it but as far as I am aware this isn't a valid excuse. As for didn't mean it - it is still happening - I am still not being paid properly, they have still not responded to grievances or FWR, not implemented/considered medical recommendations related to my disability etc etc.

It is surely hard to plead ignorance when your company has extensive policies in place on just these issues, they have been brought to your attention on countless occassions and there is a huge HR department who should be capable of dealing with the issues raised, in conjunction with management? Never mind the management bullying me (verbally and in writing).

I am just bewildered really -how much evidence do I need? How long can this continue? I think they are just waiting for me to get completely fed up and to resign.

I know the objective of the CA is to get a reference and some money for me and a confidentiality clause and no risk of further legal action for them - what sort of sums should I be requesting? So many months salary etc? Or money for the horrendous stress/discrimination/bullying?

I know I will get to see a solicitor paid for by work when a CA is finally offered, but before then I am rather clueless and my Union are taking a wait and see approach - like Olgaga also suggested.

Any further suggestions/advice?

Thank you

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prh47bridge · 14/03/2012 19:34

The benefit to you should be a decent guaranteed payout. It is usually a bit less than you would have got from an employment tribunal if you won but it takes away the chance that you might go to tribunal and lose. The compromise agreement will also normally specify what they must say in response to any requests for a reference so you know they won't give you a bad reference.

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prh47bridge · 14/03/2012 19:36

Clicked post too soon!

A solicitor who specialises in employment law will be able to advise on the right level of payout. The stronger your case the higher the payout will need to be to make it worth your while.

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workplacehell · 14/03/2012 19:59

Hi again - so I wait until the CA is offered and then take it to an Employment Solicitor of my choosing? If they say it is not enough, is my Union then likely to use their own solicitors to negotiate/proceed to tribunal?

I fear that if I take it directly to my unions solicitors they will say 'take it' regardless, to close the case.

Are you an employment solicitor Prh? I have seen these other solicitors online who are offering to take a cut of any increase they negotiate on a CA - they look dodgy. My union has said if i take legal advice now, they will drop me like a hot potatoe!

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MOSagain · 14/03/2012 21:19

You need flowery who is MNets resident employment expert. Try re-posting in 'employment issues' Although bridgy has given you really good advice already, flowery may be able to add to that and advise on quantum.

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workplacehell · 14/03/2012 21:23

Hi Mos, will repost, thank you.

What is quantum? Sorry for being stupid!

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workplacehell · 14/03/2012 21:44

Googled it - think it's amount. Thanks

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hermioneweasley · 14/03/2012 21:53

What have been your losses? Have you had the deductions from wages rectified? Do you want to carry on working there? Does the company want to retain you or let you go? TBH I think you're better talking it thru with your union and their solicitor than getting advice on here. It sounds pretty complicated and it's unlikely that you're going to be able to have a satisfactory discussion through t'interweb.

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olgaga · 14/03/2012 23:02

I strongly advise you to wait and see. The reason the union will "drop you like a hot potato" if you get your own legal advice is 1. Trade unions don't have unlimited resources and they won't waste their time and money if you make it plain you're going to ignore their recommendations. 2. They will only take cases which have a reasonable chance of success.

So you can go with the union or find a no-win no-fee who will jump at the chance to take a wedge of the insurance you have to pay up front. They will represent you even if your chance of success is remote. But it does take a very long time and it's not a straightforward matter, particularly in the kind of case you describe. Employment Tribunals are much more formal than they were years ago, and it can be an ordeal for the claimant when they find out that just because treatment is unfair it isn't necessarily unlawful. It's also much more common now for employers to seek costs if you lose a case which has been expensive for them to defend.

Let the union negotiate on your behalf. If you're not happy with the best they can negotiate then you can say thanks but no thanks to the deal and seek legal advice elsewhere.

As prh46bridge pointed out, a compromise agreement essentially means you will get an offer which is worth considering - ie enough to ensure you don't take them to an ET. That way you get a settlement without the hassle of pursuing a case, and they avoid the expense of defending the case.

At the moment I'm assuming you're on sick pay. I'd urge you to be patient. Settlement offers and negotiating strategy will usually be discussed and agreed at a fairly high level with legal advisors, so it will take time. But it will probably be resolved a damn sight quicker than if you pursue a tribunal case.

It depends where you are but in most areas you will wait at least 4 months before you can even get a preliminary hearing. In complex cases which take more than one day you could indeed be waiting 6-12 months. If cases go part-heard (ie run out of time and have to be adjourned to a later date) you can wait even longer.

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workplacehell · 14/03/2012 23:15

Thanks everyone.

Olgaga, i shall wait and see and may report back here.

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prh47bridge · 15/03/2012 01:01

No, not an employment lawyer. Just happen to know about compromise agreements for reasons I won't go into here.

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PDog · 15/03/2012 02:21

Disclaimer - I'm on maternity leave at the moment so my advice is not fully up to date.

Agree with what others have said, wait and see what is offered first. The problem with a tribunal is take it will take months, the process is not an easy one and yor case sounds quite complex so likely to be at least a 3 day hearing, which at the end of the day you could lose. Even if you win, there is likely to be a further hearing to decide the remedy, so even longer before you see any money.

It is the discrimination and victimisation elements of your case that could result in high pay outs. The tribunal use bands to determine the award based on the extent and naure of the discrimination. You should bear this in mind when considering an offer. Depending on the level of offer, a CA is a good deal - resolves things quickly, makes the legal responsibilities of both parties clear and us much less stressful and time consuming than an ET.

You need to think seriously about whether you want to continue working there gien how they have treated you. If you don't, you may need to push for a higher offer.

Good luck, let us know how it goes.

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MOSagain · 15/03/2012 08:01

bridgy me too Wink

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workplacehell · 15/03/2012 08:22

Thank you all:)

No, I don't wish to go back there. I am not the only person they have treated like this - the others have just resigned.

There is ongoing recruitment - they cannot keep their staff as they treat most people really appallingly (especially women - I also have a equal pay element, have comparators etc).

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workplacehell · 15/03/2012 08:22

oh, and i will post back what happens, thanks.

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workplacehell · 22/03/2012 17:00

Hi, I feel like im having a breakdown now as still no outcomes to any of my grievances.

Still no backpay (a substantial amount is owing).

No contact from managers at all regarding managing my absence.

I have been chasing payroll for a couple of months as i thought I was getting too much OSP. On each occasion I was assured everything was correct. Turns out I have remained on full sick pay for longer than i should because management entered my sickness incorrectly at first then failed to input my last sick note at all. So now they want it back, yet still havent paid me my substantial backpay.

Also, have heard grumblings that they are 'considering' paying my my notice period, accrued annual leave and backpay - nothing else! So the only real benefit of any compromise agreement would that it would be resolved quicker and i would get a reference. No CA has materialised yet so still cannot get legal advice as union still advocating the wait and see approach (as advised on here too).

I will be on nil pay soon and i honestly think they are waiting to see if i will resign.

I do not wish to give up as they have genuinely treated me appallingly - even HR and the Union have expressed shock at how I have been treated, so it is not just my perception.

Don't know what I'm asking really, biut how long can they drag out not giving any outcomes to greivances? Its been over 6 months since the first grievance and the issues were raised in writing several times over numerous months before that.

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prh47bridge · 22/03/2012 18:53

If all they offer for a compromise agreement is what they owe you anyway I would expect your lawyer to advise that you reject it. If they won't make it worth your while you might as well take them to tribunal, which is likely to end up costing them a lot more.

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workplacehell · 22/03/2012 19:27

Thanks prh47bridge. Should I not even expect any decisions/outcomes etc from the grievances then? Should I just forget them and wait until I get the CA?

My notice period will not be sufficient to find a similar job. I am unable to start looking now to mitigate my losses as I am under contract, off ill and so unable to provide a start date etc. Never mind the reference situation! (or the fact that I am now depressed and unlikely to cope at work)

is it feasible to also ask that they include an amount in the CA that replaces my lost wages whilst I have been on half/nil pay?

Union have stated that I do not need to complete the ET1 form as issues ongoing - would it not help to show them I am serious about tribunal if the forms were submittted? I do think they believe i will resign when I am on no pay as I am a single mum - other staff have just quit.

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