Settlement Agreements
We're here to help you every step of the way
Same day appointments with expert Employment Lawyers
If you have been offered a settlement agreement by your employer then we can help. We appreciate that this can be a very difficult and stressful time for you so our expert Employment lawyers will provide you with clear and practical advice – to ensure that you receive the best settlement and that you understand the process and costs involved.
What is a Settlement Agreement?
A Settlement Agreement (formerly known as a compromise agreement) is a legally binding document that concludes claims or potential claims that you have, provided that certain conditions are satisfied. You will usually receive a lump sum termination or severance payment that is in effect compensation for your employment being terminated. In return you agree not to bring legal proceedings against your employer.
Call us on 01908 689366 or request a call back from one of our experts.
What can be included in a Settlement Agreement?
- Payment in lieu of notice
- Accrued holiday pay
- Payment of compensation
- Continuation of benefits
- An agreed reference
- Provision of outplacement support
- Confidentiality
- Return of company property
- Restrictive covenants
- Contribution towards legal costs
Request a call back
Why choose us?
- Same day appointments with expert Employment Lawyers
- Fixed costs
- Clear and practical expert advice
- Meetings available via telephone or video conferencing
- Contact our Employment Solicitors, Paula Stuart or Stuart Snelson to make an appointment
What is the tax position?
The starting point is that all payments relating to employment are taxable and subject to National Insurance Contributions as employment income under Section 6 of the Income Tax (Earnings and Pensions) Act 2003. Typical examples of fully taxable employment income are:
- Salary payments
- Contractual bonuses and commission payments
- Holiday pay
- Payments in lieu of notice
- Consideration for restrictive covenants
However, compensation for unfair dismissal, discrimination, redundancy or other statutory claims are viewed as damages. Genuine compensatory payments paid on termination benefit from an exemption that the first £30,000 of such a payment is not chargeable to Income Tax or National Insurance. Income Tax will be payable on the balance (if any) over £30,000.
Please see our FREE POCKET GUIDE TO SETTLEMENT AGREEMENTS for further advice.
Who pays for my legal advice?
There is no legal requirement for the employer to pay your legal fees in taking advice on a Settlement Agreement and therefore you are primarily liable for all fees. However, in practice employers will normally contribute towards some or all of the legal costs. It is often possible for us to negotiate an increase in the contribution so that there is no cost to you at all. We will always ensure you authorise additional costs before they are incurred and keep you informed if costs are likely to exceed the estimate we have given.Our employment experts are here to help
Call today on 01908 689366
OUR CLIENTS SAY
Meet the Employment Law Team
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Stuart Snelson Partner
Employment 01908 689318Stuart is Head of the Employment Department and has over 20 years’ experience advising on all aspects of employment and pensions law. His partner led service provides practical and commercially focused advice to a wide range of local, national and international clients on the whole range of work related matters. -
Paula Stuart Partner
Employment 01908 689345Paula has over 20 years’ experience practising employment law and provides clear and practical advice to all clients in all aspects of employment matters. Paula also delivers bespoke seminars to clients to meet their specific training needs. Recent courses include ‘The Essentials of Employment Law’ and ‘Best Practice when Managing Redundancies’
