Most people don’t want to think about their job when they’re on holiday. But just because you’re not at work, it doesn’t mean your boss isn’t thinking about you.
While a summer break gives employees some breathing space, it also gives employers a chance to think about their staff. For example, if they think an employee isn’t performing well (whether this is fair or not), they might look to see how their team handles clients in their absence, talk to their colleagues or check the employee’s computer.
So what happens if you return from your holidays and your boss suggests you take a longer break?
Don’t panic
If you’re pulled into a meeting and your boss says they wants you to go, you may be offered what’s called a settlement agreement. In a tense situation like this, it’s easy to panic and forget exactly what was said in the meeting. As soon as you can, write down what happened, as these notes can help you when making your decision.
What is a settlement agreement?
A settlement agreement is a legally binding agreement between you and your employer. When you sign a settlement agreement you agree not to bring claims in a tribunal or a court. Typically, you receive a sum of money in return for losing your job and agreeing to the terms.
Be realistic
If you don’t sign the settlement agreement, you may have to face a disciplinary hearing or go through a long drawn out capability procedure that might end in dismissal. Whether or not your employer is being fair, it’s likely to be a stressful experience.
“Sometimes losing your job can be terribly unfair and you can negotiate hard. But be realistic,” says Yvonne Gallagher, partner at law firm Harbottle and Lewis. “If they’ve got a point and you have either behaved badly or you’re not performing, it may be that what you’re being offered now will help you have the best exit you can hope for.”
Get advice
If you’re facing this situation, you need some decent advice – and fast. It is a legal requirement to get independent advice before you sign a settlement agreement but this is also about negotiation. An employment solicitor will help you consider if you’re getting a good deal and whether you have any grounds for a claim against your employer – such as discrimination or unfair dismissal. He or she can advise you on the chances of success and how much those claims might be worth.
You can then weigh these up against the money offered in the settlement agreement and the other potential benefits of signing, such as: the reference you are being offered, the speed of the exit and your reputation. Whether your employer is being reasonable or not, you may not want to risk being dismissed. “It’s worth getting an employment solicitor at an early stage,” says Gallagher. “This can help you negotiate as good a deal as possible.”
Typically, employers financially contribute towards legal costs – often between £350 to £1,000 plus VAT – if you sign the deal. In some cases, this will cover the costs of looking at the terms but you may need to meet some of the costs yourself, particularly if you want the solicitor to negotiate a better deal. However, don’t be put off getting advice early on.
“An experienced employment solicitor will always try to negotiate so there is a realistic contribution towards these fees,” says Fiona Martin, director and head of employment law at Martin Searle Solicitors. “Most importantly, he or she will advise if the sum offered is not high enough.”
If you do decide to bring a claim, a recent landmark judgment in the supreme court means that you no longer have to pay a fee to the employment tribunal. For an unfair dismissal or discrimination claim this was £1,200.
It’s also worth doing a bit of research yourself. There are free guides, written by employment solicitors on what you need to know before you sign a settlement agreement and there are guidelines (pdf) laid out by the Advisory, Conciliation and Arbitration Service about how the process should work.
No deal?
You don’t have to sign a settlement agreement, you can refuse. A settlement agreement is, in theory, a way for both sides to sign off amicably. It is in the interests of you and your employer to handle this difficult situation as well as possible, says Phil Allen, partner at law firm Weightmans LLP.
He says: “I have seen many cases where an employee chooses to exit in a negative way, and then finds themselves working for the same manager in the future. Employers also need to think about how their reputation may be adversely affected by negative views of ex-employees.”
Joanne O’Connell is editor of EmploymentSolicitor.com
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