Employment

Your Settlement Agreement will detail the full breakdown of payments due to you, including whether any sums will be subject to tax or not. Depending on the circumstances, you may be able to secure a compensation payment as well as your contractual benefits, such as notice pay and holiday. If the compensation payment is under the £30,000 tax threshold, then it should be paid ex-gratia and free of tax.

Other financial benefits, such as pension payments and medical and life insurance will also be considered on a case-by-case basis. Non-financial compensation can include agreed references and the ability to retain certain items of company property, such as phones and laptops.

We aim to deliver a fast and efficient Settlement Agreement service to employees around the UK. Your legal fees – the money that we charge to provide advice and develop the agreement – will usually be paid by your employer, as it is a legal requirement that you obtain independent legal advice. We will advise you in detail about this before we begin work for you.

Settlement Agreements are often used as a means of resolving unhappy or unsuccessful employment or where employers agree or decide to terminate the employment of an individual. They may also be used as an alternative to a formal redundancy process.

Employees who feel they have been unfairly treated or subjected to abuse, particularly in relation to any protected characteristics – race, gender, religion, disability, age, maternity, ill health etc. – may choose to accept a Settlement Agreement. However, in these conditions our expert employment lawyers will ensure that you understand your rights and the other courses of action that are open to you, which, in these cases, may lead to substantially larger settlements.

Disclosing or reporting a wrongdoing at work which affects others. Employees gain protection when disclosing certain information, which means that they cannot suffer a detriment or be dismissed because of the disclosure. This is sometimes referred to as “making a protected disclosure”.

Usually this occurs when an employee is dismissed without any, or the correct, period of notice that is required either in their contract of employment or by statute. Wrongful dismissal is not the same as unfair dismissal, although both may apply to the same case.

Legally binding rules that, among other things, set out the minimum rest and break periods to which employees are entitled each day/week, and the maximum working hours. Typically, working time should not exceed 48 hours per week.

A form of discrimination where an employee suffers a detriment because they have raised a discrimination complaint themselves or have supported another individual with their complaint.

The ‘without prejudice’ rule means that statements made in discussions or communications as part of a genuine attempt to settle a dispute are private and cannot later be put before the Court as evidence of admissions against the interests of the party that made them. For example, a suggestion of a way to settle a dispute made by one party during mediation cannot later be used to indicate that the party had accepted responsibility or to frame any compensation or damages. ‘Without prejudice’ exists to encourage parties to negotiate an agreement rather than depend on the court to make a judgement, both to save cost and reduce pressure on Court. The contents of ‘without prejudice’ communications cannot be divulged to the Court unless it is “without prejudice save as to costs”, when it can then be divulged after the final hearing has been dealt with or the case has been settled.

In the context of an employment dispute, ‘without prejudice’ refers to private settlement discussions that should not be referred to in regular correspondence or to the Employment Tribunal. These can be to settle the dispute, or sometimes employers use this term to discuss possible exit packages with an employee.

A witness statement is a formal document, addressed to the Court, in which a witness sets out all the facts that they are aware of that apply to the case. They are normally treated as ‘evidence in chief’.

Legislation which preserves and protects employees’ terms and conditions when a business or undertaking, or part of one, is transferred to a new employer.

A statutory employment claim that employees may bring in an Employment Tribunal. Employers can only dismiss employees for one of the following reasons: misconduct, capability (which means an inability to do their job to a satisfactory level), redundancy, illegality and/or some other substantial reasons. If a person feels their employment has been terminated for a reason other than one of these then they may be able to bring a claim for unfair dismissal.

A Settlement Agreement is a legally binding agreement between an employee and their employer, which usually terminates the employment relationship with the employee agreeing to waive their right to bring the majority of employment related claims. As a form of compensation, the employee usually receives an ex-gratia payment.

When an employee is dismissed without notice or payment for notice.

Employers can use this form to respond to a claim of unlawful treatment made by an employee to an Employment Tribunal. It is often supported by Grounds of Resistance.

The party or parties who the claim is made against in an Employment Tribunal. This will normally be the employer, but in certain situations may include named individuals.

A clause in an employment contract that sets limits on what a former employee can do in the weeks and months after their employment ends. Typically, these will prohibit an employee from working for a direct competitor or setting up in direct competition with their former employer, or contacting their clients / customers and suppliers for a set period of time after leaving the business.

The situation where an employee loses their job due to factors such as the level of work available, or for a reason not related to them. Redundancy usually carries a payment to the employee, often calculated according to how long they have been with the employer, to help compensate them for losing a job for reasons beyond their control and unrelated to their performance.

Changes employers must make to give an employee with a disability the same chance as anyone else to secure a job and fulfil the role.

The minimum hourly rates that an employer is required to pay to an employee, depending on their age or whether they are an apprentice. When employees reach the age of 23, employers are required to pay them the National Living Wage, which is higher than the National Minimum Wage.

When an employer pays an employee’s salary, and potentially benefits, for the equivalent duration of their notice period but, the employee does not have to work during this time. Put simply, an employer may decide to pay an employee the would have received during their notice period but not have them working in the business. Where PILON is paid, the employee would no longer be considered as employed by the employer.