Redundancy Guide for Employees in the UK

What is Redundancy?   Redundancy occurs when an employer dismisses an employee because the business no longer needs the role. This is typically due to restructuring or downsizing efforts to reduce the overall workforce. Employment law guidelines   In the UK, redundancy is regulated by employment law, requiring employers to follow strict guidelines when making … Read more

Settlement agreement: Who signs first and who pays legal fees?

Who Signs Your Settlement Agreement First? Typically an employee will sign first and then it is signed by a solicitor for settlement agreement. They provide a certificate to confirm that he or she has provided the advice necessary to ensure that the agreement is legally binding. The employee’s advisor will then normally send a copy … Read more

Are Settlement Agreements Taxable?

A settlement agreement payment (lump sum) under £30,000 is not taxable. Payments under £30,000 are not taxable providing they do not include other contractual payments. A settlement agreement payment may be referred to as “compensation payment”, “ex-gratia payment” or “termination payment”. Payments can be classed as statutory or contractual.     The difference between contractual … Read more

What happens when a settlement agreement is breached by either an employer or an employee?

Breaching a settlement agreement, whether as an employer or an employee, can lead to legal consequences such as withheld payments or claims for damages. It is important to understand and fulfil your obligations as outlined in the agreement. When is the settlement agreement breached? A settlement agreement can be breached by eithertje employer or employee … Read more

Settlement agreement waiver of claims

From the employer’s perspective, the most important clause within a settlement agreement is often the waiver of claims.   This clause requires the individual to waive his or her rights to pursue any claims in the employment tribunal arising from their employment or the termination of their employment.    The waiver needs to be appropriately … Read more

Without prejudice conversations and settlement agreements

Settlement agreements are often discussed with employees during without-prejudice conversations sometimes known as protected conversations. The reason for this is that the detail discussed during the conversation if it is without prejudice cannot be disclosed to a court or tribunal in due course. If you have any questions relating to this then speak to a … Read more

Differences Between COT3 and A Settlement Agreement

The primary difference between COT3 and a settlement agreement is at what point in the employment dispute process they are used. A settlement agreement removes the ability of the employee to make a future claim at the employment tribunal. COT3 is used before employment tribunal proceedings take place.   Here are six key distinctions between … Read more