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F E Smith
F E Smith, Advocate
Category: Employment Law
Satisfied Customers: 8535
Experience:  I have been practising for 30 years.
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I have worked for the same company for 37 years. I have been

Customer Question

I have worked for the same company for 37 years. I have been unhappy for some time as I don't agree with some business decisions being made. when I approached my CEO to say I was thinking of leaving as I was unhappy, he stated that he knew I'd been unhappy for a year (yet did nothing about it). After several meetings where the business plan was reiterated I was offered another job outside of my division if I wanted but I agreed I could live with the situation and wanted to stay in my current role as I'm not a quitter. He was surprised by my decision (bordering on disappointment actually) and offered me redundancy, an offer which would be left on the table. A week later I asked what redundancy would look like and was told that my job was not redundant so this didn't apply, however, they would offer me a compromise agreement to enable me to have an "elegant exit". I have been offered PILON (£60k), 6 months bonus based on last years amount though this is non-contractual and not usually payable if you leave (£67), plus they've added on another £73 to round it up to £200k. I am the MD of a division with 40+ staff and have repeatedly stated that I don't really want to leave but feel I have no choice. During the last meeting when I said this the CEO said there was no point in going over old ground and proceeded to offer me the £200k. Whilst a nice sum, I want to know if this is reasonable?
Submitted: 4 months ago.
Category: Employment Law
Expert:  F E Smith replied 4 months ago.

Whether it’s reasonable or not would depend on your salary.

However the maximum compensation you would get for unfair or constructive dismissal in the employment tribunal is current £78,962.

Unless you were conducting any litigation yourself, you would normally have to pay your solicitors costs out of that which would also take care of some of that money.

http://www.morton-fraser.com/knowledge-hub/employment-tribunal-awards

obviously, you have to consider how easy it is going to be for you to get another job and with your current lifestyle and financial commitments, how long the money would last. However that isn’t a legal issue.

They cannot make you redundant if the judge was not redundant but they can pay you off and it’s a case of the job not being redundant, it’s a case of them offering you enough money to sweeten the pill.

The compromise agreement is an agreement whereby you agree to take the money and forego your rights to go to tribunal.

Can I clarify anything else for you?

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Best wishes.

FES

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