Although Tribunal proceedings and litigation should be used when all else fails and there is no alternative, employees sometimes find themselves having to bring Tribunal proceedings in order to achieve a satisfactory result.
One client who came to Carol was in just that position. She had been offered a Compromise Agreement, which offered her a very small amount of money to give up her rights. Carol believed that she had a very clear case for breach of contract and disability discrimination, but was unable to persuade the employer to take a reasonable view and put more money on the table. As a result of the employer’s unwillingness to compromise, the employer forced the employee into bringing Tribunal proceedings for breach of contract and disability discrimination.
Throughout the proceedings the employers refused to alter their position on settlement. The hearing took three days, but at the end of it the employers were order to pay a sum in the region of £25,000, more than 10 times what they had originally been prepared to offer, and also substantially more than Carol’s client had been prepared to accept at the outset in order to avoid the time and stress involved. Carol’s client also felt vindicated by the decision of the Tribunal in her favour ruling that her dismissal was both unfair and discriminatory.
By contrast, the employer would have had a substantial legal bill, a hefty compensation award, far in excess of what Carol’s client would have accepted at the outset, and a finding of discrimination against them.
As a trainee solicitor in the Employment Department Chris Annetts attends client meetings and take notes, and then dictates these to produce a clear attendance note for the file as to what was discussed.
One of the reasons clients come to see us is because they have been dismissed from their job by their employer and have been offered a Compromise Agreement. This means that the employer has offered to pay a certain amount of money in order for the employee to agree to the termination of their contract and waive the right to make a claim against the employer at any time in the future. By law, the employee must take legal advice before signing a Compromise Agreement.
On one occasion a client had been offered a Compromise Agreement which stipulated that on receipt of the payment, the employee agrees not to contact any of his employer’s clients. He was concerned that this clause was too wide and would restrain his trade when he moved on to get another job. Therefore the solicitor instructed negotiated to amend this clause to define “clients” as not including those that the client did not have any contact with at his time employed.
The client was also concerned as to whether the sum was taxable, and it was advised that a payment up to £30,000.00 is generally tax free. However, the agreement was drafted in such a way that the HMRC may have pursued the client for tax for the settlement payment. Various clauses in the agreement were therefore amended by the solicitor to make it explicit that the figure was to be paid tax free. The client was happy with the agreement after the amendments and duly signed it.
Chris played a largely administrative and organisational role in this case, amending the agreement as instructed and ensuring that full file notes were kept as to meetings and drafts of the Compromise Agreement.