2nd Class Employee

Hi,

Back in February of this year, I was told I would my “employment would be terminated by reason of redundancy” & I would receive a 6 month redundancy package. This was with no termination date, and still is. This happened to ~80 employees globally, but they were all formally served their redundancy notice & have long since left the company & received their exit packages. I am the only one remaining.

Since February, I had my first ever bad annual performance review (in 14 years), so no annual rise (fine) nor bonus (not fine) & have just recently been told that because of that same review, I have now lost my share options, which is a substantial amount of money. This is all based on what is – in my opinion – a bogus performance review, simply because I’m pending redundancy & my redundancy package always being used as the excuse (i.e. “you’ll be getting 6 months pay when you’re redundant anyway”).

But as I have no leave date & all benefits are slowly being stripped from me, what options do I have? I’m obviously very happy to remain employed & support my family as long as possible, but being kicked while I’m down is unacceptable.

1. Can my termination date never materialize (legally)? I.e. so they can keep me employed on my basic salary forever, but have removed all my benefits.

2. Can I legally challenge the gradual removal of my benefits? Other than a “Formal Grievance Procedure”, as this ultimately leads to the senior management who have made the decisions in the first place.

3. I’m being told my six month package will include my 90 day notice payment & I can be told to leave tomorrow, but surely this makes it a 3 month package? Should I legally get 90 days notice on top of the six month package?

Advance thanks for any useful advice,
***

(1) Not really although there is an element of "how long is a piece of string" in this because there is no legal timeframe after which redundancy "runs out" although clearly, if this situation were to run on for over a year, the employer may have to reconsider re-doing the exercise. Sorry, I know that isn't precise, but it's the ebst I can do, as the law doesn't proscribe in terms of maximum times

(2) No, sorry. The law does not review "performance" and if your benefits are tied to this, then there is no arbiter of performance other than the employer

(3) It depends on what the terms of the package are, but if they include the notice period then, yes, it can be included.

Many thanks, SarEl. I really appreciate you replying.

RE:

The package doesn't mention the notice period at all, but this is in my employment contract. I guess that as the 6 month package is more valuable than statutory redundancy, my employer will ask me to sign away \ waive any rights to any notice period when accepting the package. (If it is ever forthcoming!)

They cannot do that - you cannot be required to sign away your legal rights. A package can include notice periods, but it should specify exactly what is being paid and in respect of what - otherwise they will have to pay your notice period. It would also be difficult (but not utterly impossible) to change the package if others have had it. But they certainly can withdraw the redundancy notice.

Thanks again.

I guess that's my 'fear', in that thus far they've had no hesitation in taking financial benefits from me (per my original post) so if I were to challenge any lack of notice period & ask to work it \ be paid for it, that they would withdraw the redundancy package with no further discussion & pay me statutory redundancy instead. (Regardless of what I had in black & white).

I don't know the full details of my ex-colleagues' redundancy packages \ notice periods, but have heard two friends' experiences when they've been made redundant (with a package) & challenged the lack of notice period & have ultimately been successful in claiming their dues. Obviously, each situation is completely different. I just hope mine ends with a smile

Hi SarEl,

Last week, on the one year anniversary of being given the ‘heads-up’ on my redundancy, I was given two documents, a covering forewarning letter & another letter adding six stipulations to the existing six month redundancy package offer (‘the Offer’)! Four of these six stipulations will not be met as they are unreasonable, including me agreeing to signing a future compromise agreement (the content of which is unknown!). I was given the letters on 10th February & one of them asks that I sign & return a copy as acceptance of the Offer by 16th February, else the Offer may be withdrawn. I challenged some of the stipulations & asked what would happen if I didn’t sign the letter, the response to which is still pending.

I feel my employers are setting me up for failure & they have no intention to pay me the original offered six month package (which I have in writing, but am told I is worthless). So I called my home insurance providers today & someone called me back to give legal advice on my complicated employment situation. Among other things, they believe that this isn’t a genuine redundancy & urged me to raise an internal grievance with my manager in writing in the first instance, else, if this comes to a tribunal, I could be awarded 25-70% less of any compensatory award if I don't raise a grievance. Is this true?

I am very happy to continue working until this ‘final’ project is complete, but them adding these extra, mainly unfair stipulations to my existing Offer is taking a step too far.

Do you recommend me starting the internal grievance procedure?
If so, can I ‘legally’ include the earlier grievances that have led to this point (i.e. bad review = no salary rise, no bonus, no allotted shares). Is there a time limit? (from when to include grievances that can be included in the grievance).
Silly question, but does an email suffice as being 'in writing'? My employers are ***not UK based***, so if hard copy letters are required, it will delay the process. We have a UK office, but only UK HR are based there, not my manager.

I don’t believe such an action will help my working situation, indeed, they may terminate my employment (i.e. make me redundant), but the more I let pass, the more they take advantage.

Any advice you have here is very much welcomed. Advance thanks for any reply.
SCE

You can include anything you want in a grievance, but since there is no "legal redress" for these earlier complaints they can easily say that you have left it too long. I think your legal advisors are being overly cautious, but you should really raise any objections you have to the redundancy in a grievance or appeal. I don't know why they consdier it not a real redundancy - there isn't enough details here to say one way otr the other. But yes, an e-mail is sufficient - but make sure you request receipts for it!

I don't know what the other five conditions were, so I can't judge whether they are reasonable or not - but signing a compromise agreement as part of an enhanced package is actually very common practice and not at all unreasonable. Most employers in this situation would follow this practice, and I wouldn't be perturbed about it at all. You have to have legal advice independant of the employer to sign it anyway, and this would normally be paid for by the employer (if you sign it). So you would have an independant view from that lawyer as to the consequences of signing.

Thank you. You're now making me think there’s no point in raising a grievance. This will only rock the boat, but whilst I feel aggrieved from my treatment this past year, I’m very aware that should this come to an employment tribunal, any compensatory award could be significantly reduced by not doing so! That said, if a mutually agreeable compromise agreement can be signed & adhered to, I understand that a tribunal is then out of the question anyway?

I have no problem signing a compromise agreement, but, as touched upon in my previous post, I have issue with four of the six stipulations in the letter I’ve been asked to sign by tomorrow, most issue is with numbers 1,2 & 6:

[B]The Offer is subject to:

1. your timely & satisfactory completion of the current project which is due to be completed in April this year;[/B](SCE: my current & final project will not complete in this timeframe. This date goes hand-in-hand with my Notice of Termination & I don’t have a date as it’s now linked to this latest project. The other manager that’s given me the project estimates at least a September completion, so I obviously don’t want to be held to a date I already know won’t be met. I feel this is trying to trip me up & have said as much. Do you agree?)

2. your performance reviews being satisfactory;
(SCE: by the company’s definition, me being a redundancy candidate means I will get poor performance reviews, as I received last year, one month after being told I was being made redundant. The review reflected that fact & not my performance throughout 2009 when I worked over double my hours, for one.)

3. you not having been subject to disciplinary proceedings or in breach of your employment contract;
4. you acting in the best interest of <the Company>;

5. you signing a compromise agreement which we will send to you for signing towards the end of your current project. The compromise agreement will repeat the terms of the Offer; and
(SCE: Is this a standard way to phrase such a stipulation? If I sign this letter, I’m also agreeing to sign a compromise agreement that will include the terms of the Offer & what else? I’m signing now to agree to whatever else they choose to include in that compromise agreement, surely?)

6. you keeping the Offer & this letter completely confidential… etc. …“Any disclosure to… anyone at all except for your spouse or partner in confidence may result in withdrawal of the Offer”
(SCE: the non-disclosure list appeared to include HR & any legal representation, in fact, the only the only person I’m permitted to discuss it with is my wife! Or is it legally assumed that HR & legal representation are permitted? That said, we no longer have a UK HR department!)

I would advise that you do stick out - these conditions (except for the one you originally questioned!) are really over the top. And nobody can prevent you from talking to a lawyer. And not wishing to fall into stereotypes, but [text removed] has more lawyers per head of population than most other countries, so they know this! So yes, I think that you must write back and explain what is unreasonable about these terms.

Thank you for such a quick & comprehensive reply!

I believe they're using a London-based lawyer for my 'case' to comply with English law, but who knows who's had a hand in adding any extra clauses \ stipulations to this list.

I will certainly respond as you advise, though one final question. When you suggest sticking it out, do you mean without raising a formal grievance? Sorry to raise it again, but I'm hung up on this point in my head (i.e. if this goes to an employment tribunal & any compensatory award is then reduced because I didn't), but need I be concerned if I don't raise one? Nothing will change in my (financial benefit) circumstances as it's an internal process, but it's then on my record. I don't want to unnecessarily rattle cages, yet keep my best options open.

I'm going to make another donation to DogsTrust now & thank you again for your invaluable help, it's very much appreciated.