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11 June 2009 / Charles Pigott
Issue: 7373 / Categories: Features , Employment
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Unravelling exit deals

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

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MOVERS & SHAKERS

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
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