Compromise Agreement to manage out Poor Performers?

Compromise Agreement to manage out Poor Perform...

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We have a situation whereby three managers in the business are failing to deliver in a number of areas. We have started a performance management route with two of them; one of which is already at a written warning stage for a specific failure. We all know that managing someone out through performance management is a time consuming exercise and would like to offer them a compromise agreement to leave.

Is this recommended and what are the potential pitfalls? How do we stand if the employee refuses and continues down the performance management route and is ultimately dismissed - I suspect an ET may not regard the previous CA offer positively?


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By Zenith Blue
06th Jul 2009 14:24

I can't comment on the legalities if they reject the agreement. however it's worth bearing in mind the morale of your team. they may well see a poor performer they've had to put up with being rewarded with a nice payoff, rather than a strategy to get rid without too much hassle. due to confidentiality there's little you could say to those staff to change that perception. and it may even encourage people to let their performance slip if there's a chance of a payoff in it. this could be a very damaging course of action. better to manage the poor performance and set a positive example to your staff.

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By peterstanway
06th Jul 2009 16:39

offering a CA is unlikely to be covered by the without prejudice rules so will come out
the bigger risk is that they claim CD as the offer indicates a complete lack of faith in them (see Billington V Hunter)
I advise that you start the process and ask if he thinks he can improve because if not there may be an amicable route to be found
Not risk free but I would suggest better than seeing a long and painful process especially if you do not really know what you are doing with it

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By sloughleisure
07th Jul 2009 11:21

The recent CA my Company reached with a former employee worked well. The employee was realistic enough to see it as a win-win way out of the situation. It does grate to think you have to pay off a poor performer but this is, in my view, outweighed by the benefits of dealing with the matter quickly and cleanly.

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