Weekly Payout From My Employer

[ste v]

Hi - my employer has offered me a payout of £500 a week for 20 years but I'm concerned that this agreement would be difficult to uphold as the director of the (small) company could pass away or the company could be sold or go bankrupt - would a solicitor even be able to put this agreement down on paper ? I.e. Stating that if the director dies the company still owned the debt and if the company is sold the debt must be paid out in full ? Tia

[murraymints]

sounds too full of potential pitfalls to me...

[Prudie]

Payout for what? You need to specify. Redundancy, hush money??

[ste v]

Basically I helped create a company and worked my backside off for 5 years for very little money to make it a very successfull and profitable company

[murraymints]

sell your share ?

[ste v]

I have no share in the company - the payment would be for "services rendered" I suppose

[murraymints]

can't he give you a one off lump sum ?

[Baldric]

Seems a bit harsh not to get a payrise in that 20 years, think you need a serious chat with him.

[ste v]

They don't have the cash to give me a lump some so it'd have to be a weekly/monthly payment - as far as the "inflation" factor is concerned I'm more than happy with what I've been offered so I'm not concerned with that - I just need to make sure that this agreement is solid ?

[murraymints]

you need proper legal advice and contract !

[Barmaid]

Ste v, This rings alarm bells with me. You NEED and you must have proper legal advice. There is not enough here for me to advise you and in any event it is too tricky to do it over the internet. You must seek proper legal advice because atm I see "train wreck" written all over this.

[ste v]

Thanks everyone - I'm hoping to get proper legal advice tomorrow - there's no way this will happen unless it's all contracted and signed off by a solicitor

[Tilly2]

£500 isn't going to be worth much in twenty years time. Is this your salary?

[Peter Pedant]

interesting to see Barmaid's warning

Company A guarantees for twenty years
and then directors go backrupt OR have it cease trading solvent - and I dont see how you can ensure that doesnt occur ( other than they pay £20k into it)

Chad Valley toy maker was sold to A with the guarantees of continuity in 1973 and was sold on to B the next day who ceased trading and asset stripped.
The workers trooped up to the old owners to complain ( they had the mun mun remember) ( physically - up their drive in hundreds) and the owners said 'what do you expect us to do?'

Part of the unacceptable face of capitalism - where working companies were bought - the workers fired and the assets/land asset stripped

[Guilbert53]

BHS also comes to mind about payout "promises" (pension etc) !

As has been said, £500 is now going to be worth much in 20 years time.

I bought my house about 25 years ago for £80,000 and it is now worth nearly £400,000 (and I got a "huge"! £50,000 mortgage at the time to buy it).

[Peter Pedant]

well done Guil
and it is all a tax free gain - (first house)

[Jackdaw33]

That's over half a million quid over 20 years.

[bhg481]

as a rough approximation, with an inflation rate of about 4%, money halves in value over 20 years.