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Compromise Agreement Case Study: New Job and Compensation Boost

June 8th, 2010

Summary

How Fiona Martin secured the amounts offered in a Compromise Agreement in a situation where an employee had originally rejected the offer but had then quickly found a well-paid job.

Situation

John had worked as a project manager for a large company for more than five years. He was advised that there was going to be a restructure and his job would no longer exist. He was given a Compromise Agreement in which he was offered four months’ salary.

However, he subsequently found out a less senior colleague had been offered his job at a lower rate of pay.

What we did

John came to see Fiona Martin who advised that he had a strong claim for unfair dismissal. She helped him draft a grievance on the basis that this was not a true redundancy as his job still existed.

However, after the initial grievance hearing, John managed to secure the offer of higher paid employment starting as soon as possible. John was concerned that if the company found out about this it might withdraw its offer of four months’ money as this was more than the five weeks’ notice statutory redundancy pay he was entitled to.

The result

Fiona negotiated a small increase to the sums offered under the Compromise Agreement and ensured it was completed before he started his new job.



Find out more about how we can help with Compromise Agreements as well as our compromise agreement employment law service for employers and trade unions with multiple sign-offs.


filed under: Employment Law Resources/Case Studies