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Dismissed before one year period
My wife has been sacked after eight months. The solicitors firm she works for has given her one month's notice and pay (she's not required to work out the notice period) and offered to pay her an additional £1,700 if she signs (within 14 days) a contract compromise agreement pursuant to section 203 of the Employment Rights Act 1996.
My wife received no oral or written notice that there was an issue with her or her work. The company did not follow its own contractual disciplinary procedures, e.g. three letter warnings, etc.
Q. Would these disciplinary procedures apply only after 1 year's continuous service?
Q. Is this a breach of contract, even if my wife has only worked there for 8 months?
Q. What is this 'contract compromise agreement'? The reasons for dismissal were cited as not handling the quantity of work expected and not growing and developing into the team. Real reason: clash of personalities between boss and employee.
Q: Are they running slightly scared and covering their backs with contract payoff ruse?
Q: What advice can you offer on how we might proceed?
Many thanks
Hi there
In answer to your question, a compromise agreement is a document in statutory form, on which your wife would have to get independent legal advice to make it binding. Once signed, she will exclude all her rights to sue the employer (except limited pension and personal injury rights) in return for the payment/other terms set out in the agreement.
I'd suggest she goes to see a local lawyer/union officer soon, and they'll advise her further (Is there any provision for payment of legal fees in the agreement? If not, the lawyer should ask for payment - I always think it is outrageous if the employee has to pay!). She should think about what other terms she might want in the agreement - e.g. confidentiality, an agreed reference etc.
It will only be a breach of contract if the disciplinary procedures in question are stated to be contractual - or if your wife can show that they're always followed. Some companies exclude the application of disciplinary procedures during the first year - you'll need to check the contract/staff handbook.
Sounds to me as though the company probably is a bit scared she may sue, otherwise why offer her an ex gratia payment? In the absence of a year's service, her only possible (obvious) claims would be in breach of contract (i.e. salary for the length of time a proper disciplinary process would have taken) and possibly discrimination.
Good luck
Rachel
Live Q&A on Ask The Expert
Employment lawyer Rachel Lewis advises on your work-related issues
In answer to your question, a compromise agreement is a document in statutory form, on which your wife would have to get independent legal advice to make it binding. Once signed, she will exclude all her rights to sue the employer (except limited pension and personal injury rights) in return for the payment/other terms set out in the agreement.
I'd suggest she goes to see a local lawyer/union officer soon, and they'll advise her further (Is there any provision for payment of legal fees in the agreement? If not, the lawyer should ask for payment - I always think it is outrageous if the employee has to pay!). She should think about what other terms she might want in the agreement - e.g. confidentiality, an agreed reference etc.
It will only be a breach of contract if the disciplinary procedures in question are stated to be contractual - or if your wife can show that they're always followed. Some companies exclude the application of disciplinary procedures during the first year - you'll need to check the contract/staff handbook.
Sounds to me as though the company probably is a bit scared she may sue, otherwise why offer her an ex gratia payment? In the absence of a year's service, her only possible (obvious) claims would be in breach of contract (i.e. salary for the length of time a proper disciplinary process would have taken) and possibly discrimination.
Good luck
Rachel
Live Q&A on Ask The Expert
Employment lawyer Rachel Lewis advises on your work-related issues
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