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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
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Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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have worked company years, but went off sick 2

Resolved Question:

have worked for a company for 10 years, but went off sick 2 years ago with heart problems. Company not keen for me to return to original position, but cannot find alternative employment within the company. Company sick pay ended 18months ago and have received nothing since. Eventually come to an agreement with company to early retire with redundancy. Company has offered make pension up to feb 2015 as I have not added any money to my pension for the last 18 months. They have also offered a redundancy package with 2 months notice. I an also entitled to 36 days holiday, but the company are now saying that they will not pay this as they have had to pay my pension company £13000 to bring my pension up to Feb 2015. I feel that I am entitled to the holiday pay on top of the package. Is this correct.
Submitted: 2 years ago.
Category: Employment Law
Expert:  Ben Jones replied 2 years ago.
Ben Jones :

Hello, my name is ***** ***** it is my pleasure to assist you with your question today. The pension payment they have offered - is tat a goodwill payment, which they were not obliged to make?

Customer:

Steve



As discussed on our call with Valentina and on Thursday: we can support you with the cost of early retirement (that is not paid to you but to Aon Hewitt) AND pay the 10k net redundancy and notice period as per the settlement agreement - to you.




Regards,


Imola



Imola Richards


HR Manager




Sent from my iPhone



> On 5 Feb 2015, at 23:34, "***** *****vesey" <*****@******.***> wrote:


>


> Imola,


> This is confusing. Exactly how much would I be receiving. Is it as stated in the agreement + £13000 making £30000 in all.


>


> Steve


>


>


> Sent from my iPad


>


>> On 5 Feb 2015, at 22:50, "Richards, Imola (GE Power & Water)" <*****@******.***> wrote:


>>


>> Steve


>>


>> Discussed payments are on the settlement agreement: 4900 notice period + 200 for other + 10k redundancy pay (this is net).


>> Cost to the company for your early retirement (13k) is not mentioned as it's a cost that the company is taking on and you do not need to formally agree to that.


>>


>> I trust this helps.


>> Imola

Customer:

Copy of last email I would think it is a goodwill payment to enhance my pension

Ben Jones :

It appears that the company has voluntarily agreed to take on the costs of your pension. Whilst legally you can claim the holiday pay you are due, this can be waived if you and the employer agree to do so under a settlement agreement. You cannot be forced to waive your rights to holiday pay but at the same time the employer cannot be forced to pay the pension enhancement. So you must consider what is more important to you – getting your holiday pay or the pension. As you can see the risk is that if you push them too much for the holiday pay, you could end up losing the pension pay because they may simply decide not to go ahead with it. Remember it is a goodwill payment and as such they have no obligation to pay it so if they find you difficult in the negotiations and do not agree with paying you the holiday pay then they could refuse to pay the pension just so you can get the holiday pay. So whilst legally you may be entitled to claim your holiday pay, pushing for it could affect the goodwill part of the agreement and you could end up being £13k worse off.

Hope this clarifies your position? If you could please let me know that would be great, thank you

Customer: Thank you I think that is what I expected. It was just they were saying pay off of £30000 and they will help me to retire early. You have been most helpfull. I will take there offer and not push for holiday pay
Ben Jones :

you are most welcome, all the best

Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 46199
Experience: Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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