In an Employment Appeal Tribunal case the EAT have concluded
that where an employer stopped pay to an employee who was
suspended prior to the conclusion of a Compromise Agreement,
the date of termination was not the date when pay was
stopped.
In this case a termination did not occur until weeks later
when the employer sent a letter unequivocally ending
employment.
The case in question (Radecki v Kirklees Borough Council)
underlines the importance of the fact the Compromise Agreement
was marked "subject to contract" when it was sent out
in draft form and therefore was not by any means
conclusive.
The EAT underlined the importance of a clear and unambiguous
statement terminating employment. This is not the first time
this has been underlined by the Courts.
Employers are well advised to remember that caution should be
used when giving draft Compromise Agreements. They should
certainly be drafted properly and marked subject to contract
and without prejudice (where without prejudice status is
genuinely attracted) and to use clear and unambiguous language
when bringing the effective date of termination in to play.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
