London +44 20 7184 7545
In a recent Employment Appeal Tribunal decision, an employment judge took the opportunity to comment on a practice widely described as “compromising staff out”. The judge described the employer’s approach in the case King v Royal Bank of Canada as “a very limited procedure” apparently common in the banking industry. It involved inviting the employees to a meeting, explaining the reasons for the termination of their employment, putting them on garden leave with immediate effect, not giving them the right of appeal, while offering them a compensation package in return for signing a compromise agreement. The reason the employer put forward for this approach was the potential risk of damage to the business from a disgruntled employee who remained in the office and continued to carry out day-to-day work. The employer’s evidence said it had subsequently changed this practice.
To read this article in full on the People Management website, click here.