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Compromise Agreement Case Study: £15,000 Settlement and Favourable Reference

March 18th, 2010

Summary

How Marsha Thompson secured a Compromise Agreement containing a sum of £15,000 and a favourable reference for her client.


The situation

Shirley had worked as a director for a large company for more than 10 years where she was subject to a campaign of bullying and intimidation by her manager. She had raised these issues with her employer on several occasions. She even went as far as lodging a formal grievance – which her employer ignored.

Shirley raised another formal grievance to try and ensure the company dealt with her complaints. However, in the middle of investigating her grievances, the company instigated disciplinary action against her on a spurious allegation of misconduct. At this point Shirley had already resigned and was working her three months’ notice.


What we did

Shirley came to see Marsha Thompson for advice about her grievance and impending disciplinary hearing.

She was advised that she had a strong claim for constructive unfair dismissal as the company’s serious repudiatory breaches entitled her to resign and claim constructive dismissal. A repudiatory breach is a breach so serious as to damage the relationship of trust and confidence.

Marsha wrote to the company advising that Shirley would be bringing a constructive dismissal claim. She also put forward a “without prejudice” (off the record) offer to settle her claim as Shirley did not relish the idea of having to go to an employment tribunal.


The result

Following Marsha’s letters to the company, it offered a Compromise Agreement. Marsha was able to negotiate an ex-gratia payment of £15,000 which equated to 9.5 months’ net pay together with a favourable reference to enable Shirley to get another job at the same level. The company agreed that Shirley could draft her own reference which Marsha helped her do.

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filed under: Employment Law Resources · Case Studies · Employment Law Resources