Some companies are paying employees up to three months’ standard company employer pension contributions into the employee’s pension fund. As pension rights are not included in a compromise agreement, if you are an employee and this has been offered to you, you will need to check your statement of your entitlements under the Pension Scheme when you receive this from the Pension Company and the available options for dealing with those entitlements.

If you have any queries, you should contact the Pension Company for further clarification.

You should also note that your employer will exclude liability in your compromise agreement  in relation to payment of pension rights to you as the payment would be administered by your Pension Provider.

We are advising a number of clients that are placed on garden leave because, for instance, their employers want them to take this time away from the office without paying them in leiu of notice.

Use the time at home to sort out your pension rights (if applicable), to ensure that all of your holiday entitlements are agreed and that you are happy with the terms of your compromise agreement.

What is important, however, is ensuring that you are happy with the terms of your pension before you sign your compromise agreement. Now this may not always be possible. But speak with your pension provider at least before signing the compromise agreement. As explained in previous entries, there will only be e mention of your pension in this agreement.

At RT Coopers, we do our best to ensure that you are happy with your pension terms before we get you to sign off on your compromise agreement. This is not always possible, but it is worth a try.

Pension rights are mentioned in your compromise agreement but no details of such rights would be included in the agreement.

You would still need to check that you are given the right entitlement by your pension provider. Sometimes your termination date can make a significant difference to the amount of pension that you could receive. You might be able to negotiate changing your termination date with your employer, if this might impact on your entitlement.

1. You have received independent legal advice on all and any claims that you might be able to bring against your Employer in the Employer Tribunal and the High Court/County Court in respect of your employment and termination of employment.

2. You further warrant you have reviewed such claims with the Independent Adviser and been advised upon the possibility of pursuing such claims and you waive your rights to pursue such claims

3. You further warrant and confirm that:

i.  You have  no other complaints whatsoever against your Employer  (except those referred to in the previous entries on warranties);

ii. You acknowledge that your Employer has agreed to pay the Severance Payment only on the strength of that warranty;

iii. Save in respect of claims relating to personal injury and pension rights (as explained in the earlier entries), you will refrain from presenting any complaint to an Employment Tribunal, County Court or High Court; and

iv. You will not present your Employer with any questionnaire, data subject access request or request under the Freedom of Information Act 2000 (if relevant) in relation to your employment or its termination or in relation to any other matter arising prior to the date of the Compromise Agreement except in respect of any breach or information which may come to light after the date of the Compromise Agreement. 

More regulations in the next blog entry.

1. You have received independent legal advice on all and any claims that you might be able to bring against your Employer in the Employer Tribunal and the High Court/County Court in respect of your employment and termination of employment.

2. You further warrant you have reviewed such claims with the Independent Adviser and been advised upon the possibility of pursuing such claims and you waive your rights to pursue such claims. The warranties that we have discussed in this blog and which you will be required to give to your Employer, do not apply to the following:-

• Any claim to enforce an Employee’s pension rights which have accrued up to the date of the compromise  agreement under the Pension Scheme;
• Any personal injury claim which an Employee is not aware as at the date of the compromise agreement; and
• Any claim necessary to enforce the terms of the compromise  agreement.

 More regulations in the next blog entry.

In terms of pension rights, they are excluded from your Compromise Agreement and you will have to speak with your pension provider to obtain specific details.  Usually with pension schemes, you would no longer be allowed to contribute to your pension beyond the agreed date.