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 and statutory employment rights Contractual rights … Read more
What is Redundancy? Redundancy is when an employer dismisses an employee from their employment, usually to reduce the total number of employees that are employed by the company. Employment law guidelines In the UK, redundancy is governed by employment law. This means that employers must follow strict guidelines before making any redundancies. … Read more
No. Although both deal with the dismissal of an employee, they are different. The difference is, redundancy is a longer, formal process involving a notice period, redundancy pay and sometimes the option to move into a different job role. The settlement agreement process is quicker and is a negotiated legally binding contract in … Read more
