Our reference: DZR/DLW/013046/143868
Manches Manches LLP 3 Worcester Street Tel + 44 (0)1865 722106Fax + 44 (0)1865 20 10 12DX 4322 0xfordwww.manches.com
Mr D Versi
Strictly Private and Confidential
Without Prejudice
By Post and e-mail
15th April 2004
Dear Sir
Keble College
We are instructed by the College to write to you on a without prejudice basis in order to restate the College's offer of an enhanced severance package. You have not formally responded to the Warden's without prejudice letter of 31 March although we note that you refer to the revised severance package in your open letter of 8 April, and you also raise the possibility of a discussion of settlement.
We should first make it absolutely clear that the College has put forward a proposal for an enhanced severance payment to you in recognition of your years of service to the College. The College is not obliged to make any further compensation payment to you beyond that set out in our open letter of today's date and whilst we note that you refer to the possibility of raising a claim against the College, our view is that no such claim is likely to be successful. The College's proposal has been made on a wholly ex-gratia basis and should not be seen in any way as an admission of liability. As you are well aware, the College has charitable status and is constrained as to the use of its funds. We have advised that the proposed ex-gratia payment is acceptable in terms of the Ccllege's status.
You have questioned the College's decision to reduce the proposed payment to reflect the monies you have received from the College during the period of your grievance and appeal. It would not be proper for the College effectively to pay you twice for this period and we consider it entirely equitable and consistent with the College's obligations as a charity that the ex-gratia sum be reduced to reflect the monies paid to you by the College over this period. This is in no sense a penalty but simply a means of ensuring that there are no unfair consequences to either party of the delay to the restructuring process.
In her letter of 31 March, the Warden indicated that the College was prepared to make a total payment to you of £22,565. This sum includes a payment in lieu of the balance of your notice period and your statutory redundancy pay. Full details of the calculation of those payments are set out in our open letter of today's date.
We have advised the College that the figure of £22,565 should be adjusted to reflect the fact that you will, in fact, receive the net sum of £270.24 in respect of the first two days of April in any event via the payroll. Furthermore, should you wish (as we believe you do) the College to make its normal contribution to your USS pension then your contributions (totalling £1,279.80 including AVCS) would be deducted by the College from the termination payment, and this sum would of course, be paid to USS together with the College's contribution of £1,637.49. In effect this would make the total payable to you £20,014.96, plus taxable holiday pay of £989.70, and two days' pay representing the first two days of April (£359.90 gross: £270.24 net).
In our open letter we refer to the anomaly in relation to your rate of pay. Provided all other terms of settlement are agreed, the College is prepared to waive any claim it may have against you in relation to the unauthorised enhancement of your salary.
The College's offer of an enhanced severance payment is subject to the following three conditions:
* You must enter into a compromise agreement with the College. Once you indicate your acceptance of the offer, we will forward you or your advisors a draft agreement. You will need to obtain legal advice on the terms and effect of the agreement and the College will contribute £250 plus VAT to the costs of that advice.
* You must have returned all property belonging to the College to the College, including any files, in whatever form, you may hold and the laptop computer provided by the College for the use of the Accounts department. These items should be returned to the College as soon as possible in any event (as stated in our open letter) but you should be aware that no payments will be made to you unless all College property has been returned.
* You must accept the offer by 4pm on Thursday 22 April, failing which it will be withdrawn. The College will not be obliged to make any further or other offer to you. The deadline for acceptance of the College's offer was originally set at 16 April, but given the Easter break the College is prepared to extend that deadline until Thursday of next week.
We look forward to hearing from you as soon as possible and in any event by 4pm next Thursday.
Yours faithfully
Manches LLP