Be clear about the termination date
Negotiations over the terms of a Compromise Agreement can sometimes become protracted and the proposed termination date set out in the draft Agreement may come and go. Employers should be aware that if they do not wish to continue to employ the individual beyond this date they need to take clear steps to terminate his employment.
In Kirklees Metropolitan Council v Radecki R was suspended following concerns about his skills and experience. Disciplinary proceedings were instigated but subsequently put on hold following discussions about a possible termination of his employment on terms as an alternative to the disciplinary process. The Council drew up a draft Compromise Agreement marked "without prejudice" and "subject to contract" which stated that R's employment would terminate on 31 October 2006. R was removed from the payroll on this date but the Compromise Agreement was never signed and in February 2007 R said he was not prepared to enter into it. The Council wrote to R on 5 March 2007 advising him that in accordance with the terms of the draft Compromise Agreement his employment had been terminated on 31 October 2006. R disputed this and brought a claim of unfair dismissal, arguing that his employment had terminated on 6 March 2007, being the date on which he received the letter from the Council advising him that his employment had been terminated.
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