You may see it happening to your colleagues and there is a chance it can happy to you. There are many reasons a company will offer you a compromise agreement. It could be to insulate themselves from future legal cases, it could be to let go of a redundant employee or it even could be to let go of an employee who is not performing well. It is often used to let go of senior employees without too much of a fuss. One of the key features of a compromise agreement is that you are provided with a settlement amount, in exchange you will have to agreement not to hold the company liable for any grievances in the future.
In most cases the settlement figure is what can be the most stressful. While the company may put forth their own figure, you will need to take the help of an attorney to get yourself what you deserve. Here are some tips that can help you with the calculation.
You will first need to get organized as far as documentation goes. Bring together all your financial statements, titles, insurance coverage, and your income related information. Calculate what your disposal income is. This is basically the amount of money you are left with once you are done paying all the bills that you are liable for. It is primarily your gross income taking away all your monthly living expenses. The best way to keep track of this is to do all your calculations on worksheets.
You then need to know your net worth, which is a calculation of all your assets and what they are valued at in the present market. You will need to take the fairmarket value which is taking away any of the applicable expenses as well. These expenses could be liquidation expenses. Again a worksheet would be really useful at this point.
Then you will need to put together your disposable income and your net worth. Calculate the figure that you would have arrived at for a period of 60 months and then you will have a figure that can be considered a reasonable one to make. When it comes to the method of payment, you will have to check with your tax lawyers on what would be the best way to receive the figure. There are different ways such as check, credit card or even money order. The taxation authorities will have to informed and your lawyers will have to help you this.
In most cases the settlement figure is what can be the most stressful. While the company may put forth their own figure, you will need to take the help of an attorney to get yourself what you deserve. Here are some tips that can help you with the calculation.
You will first need to get organized as far as documentation goes. Bring together all your financial statements, titles, insurance coverage, and your income related information. Calculate what your disposal income is. This is basically the amount of money you are left with once you are done paying all the bills that you are liable for. It is primarily your gross income taking away all your monthly living expenses. The best way to keep track of this is to do all your calculations on worksheets.
You then need to know your net worth, which is a calculation of all your assets and what they are valued at in the present market. You will need to take the fairmarket value which is taking away any of the applicable expenses as well. These expenses could be liquidation expenses. Again a worksheet would be really useful at this point.
Then you will need to put together your disposable income and your net worth. Calculate the figure that you would have arrived at for a period of 60 months and then you will have a figure that can be considered a reasonable one to make. When it comes to the method of payment, you will have to check with your tax lawyers on what would be the best way to receive the figure. There are different ways such as check, credit card or even money order. The taxation authorities will have to informed and your lawyers will have to help you this.