Would you walk from your role for a year's salary settlement deal?

[UndoRedo]

Workplace relations have broken down, and my employer has opened up the conversation regarding a settlement agreement, with pay out and reference. I'm early 50s, been there almost two decades.

Would you take the money and run? I have a niche role, but there are other roles out there and consultancy opportunities. But as a single person with a mortgage, it is a risk!

Are you in the Public or private sector?

No. I was just in this situation and didn’t go. I’m 50yo. Plenty of people in their late 50s took it. I just feel I need to keep working at a job with a good salary for a few more years yet. People are saying the job market is currently dire and I was worried about not finding another job.

edited, with me the organisation was cutting jobs to save money. I wasn’t in the situation where relations had broken down so guess it depends how bad things are?

Public currently.

I did - however I’m in the fortunate position of having a husband who earns a large salary. On my own, with a mortgage and knowing how brutal the job market is, I wouldn’t do it.

No. My philosophy is to keep working as long as I reasonably can. I don't have a fallback option financially.

If relationships have broken down how would staying look? I took it when i was offered as staying would have ruined my mental health. Took me six months to get over it and find another job. No regrets.

Not if you are Public sector. Sorry - but you will definitely take over a year to find a new role.

Yes I would. Niche roles are prime for consultancy.

Your alternative is going through a PIP which they will do to get you put as a years salary is a signal....PIPs are sole crushingly awful and ultimately very likely to severely impact your mental health - I'd get a decent lawyer but i'd 100% take it.

Do you have an option, realistically? A full year salary is a generous option in public sector, especially as anything above your notice period will be tax free.

Are they making you redundant or are they paying you off?

Organisations don't normally just pay someone a year's salary to leave unless they are mitigated against a potential Employment Tribunal.

if they no longer need your job they give you redundancy based upon either statutory or in-house policy.

Paying me off really, complicated situation but trust has broken down. Due to length of service the statutory would be around 9 months anyway

Absolutely I would take it. I am confident that, if I didn't have a full time job and didn't have to worry about immediate finances, I would get a suitable role within a year though.

Yes. Because I plan to go next year anyway, which they do not yet know!

Make sure that they don't cap any payoff in line with statutory redundancy.
Although you get 1.5 or 2 weeks per year of service as you get older there is a cap of (I think) 10k for statutory payments.

If statutory is nine months, then a year’s not THAT generous, given you’d be foregoing the continuation of your pension.

Do you have the option to transfer sideways, away from this manager? Or is this a breakdown of trust with the org as a whole?

If you feel you’ve no choice, I would push for an increased payout and make sure a good reference is guaranteed.

Hell yeah! But then I'm near retirement age.

Reference will be included, but yes, 12 months may not be enough really.

The problem you’re going to have is if the relationship has broken down will they effectively manage you out anyway?

Take legal advice to establish if this figure is reasonable in your individual circumstances.

For eg if an employer is facing a serious race discrimination claim, a years salary might be low.

In a heartbeat!

I would take the opportunity to set myself up doing something I really want to do.

Yes but I’m confident I’d be able to find another job through my network relatively quickly.

I did. I was offered redundancy at 59 as job spec was changing from mainly desk based to include frequent business trips and client visits which I didn't want. I still had a mortgage but did have a very good SIPP to draw on, so financially not an issue.
I was very, very surprised at how little you need to actually live on when you are not working.

Depends how likely you are to get a new role in about a year and a half.
I assume you would technically be made redundant so they first £30 k would be tax free. It's early in the tax year so you probably have most of your annual allowances left so the payout wouldn't be lost to higher tax bands (don't get made redundant at the end of a tax year, it's painful).

The current employment is untenable really unless you can move sideways to another department.

I would, you will have a year of salary to take some time and find something else.