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Tag Archive

What You Need To Know About Settlement Agreements

Settlement Agreement

Settlement agreements are legally binding contracts that are used to end an employment relationship between the employer and employee. They came into effect in 2013 and they are used to stop individuals bringing a claim to a court or an employment tribunal.

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Settlement Agreements

In our series of articles following the collapse of Carillion we have looked at how to avoid making compulsory redundancies along with consultations and redundancies. We conclude the series taking a look at Settlement Agreements.

Settlement Agreements are normally used to bring an employment relationship to an end in a mutually agreed way. They are often used when an employer and employee agree that their employment relationship is no longer working, and can be used to conclude a workplace dispute.

If as an employer you have been unable to avoid staff losses then a settlement agreement can also be a sensible way to document agreements reached concerning the termination of employment.

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LEGAL UPDATE: Termination Payments – What is changing on 6 April 2018?

A new tax regime takes effect from 6 April 2018 in relation to payments in lieu of notice (PILON), alongside other significant changes to the taxation of termination payments. These changes reflect the Government’s stated intention to “tighten and clarify” the income tax treatment of termination payments. In this article we will look at exactly what is changing and how it will affect you.

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Ambiguity and the meaning of dismissal

The difference between a dismissal and a ‘mutually agreed termination’ is a point often tested in UK employment law. The fallout for an employer for mistakenly thinking a dismissal is a termination agreed between them and the employee, can be quite disastrous.

The Employment Appeals Tribunal (EAT) recently gave a good example on distinguishing the two situations in the case of Francis v Pertemps Recruitment.

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Further plans by the Government to provide businesses more flexibility through changing employment laws

I know it may only seem as though it was yesterday that I was informing everyone on the consultation about the employment tribunal but I can assure you that it was last month! So I thought for those of you who are following the reforms I would provide you with a short summary of the proposal by Business Secretary Vince Cable on 14 September. He announced further steps to reduce employment law in his vision to give business owners/managers more flexibility in managing their workforce.

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