When can employers wriggle out of paying termination agreements? Charles Pigott reports
As the cause célèbre of Sir Fred (“the Shred”) Goodwin illustrates in a slightly different context, it is normally too late to renege on a promise once a formal commitment has been made. But two recent cases involving compromise agreements show that, as with most rules, there can be exceptions.
Outraged of Tunbridge Wells
Nearly two years ago a severe outbreak of the “superbug” c difficile at hospitals managed by the Maidstone and Tunbridge Wells NHS Trust led to the departure of its chief executive Rose Gibb. She agreed to accept the immediate ending of her employment in return for a termination payment totalling around £250,000. She entered into a compromise agreement to that effect, but before the money was paid over, the Department of Health intervened to stop the payment. A payment of £75,000 in respect of her contractual notice entitlement was subsequently authorised, but the rest of the money was not paid. Ms Gibb brought proceedings against the trust to recover the balance.
A few weeks ago the High Court’s
