Compromise Agreements Solicitors & Lawyers » Payment in Lieu of Notice

Employment Lawyers – Compromise Agreements – Offer made by Employer

admin — Fri, 23 Jul 2010 07:17:23 +0000

If you are an employee, our employment lawyers cant stress enough how important it is to take independent legal advice as early as possible from emoployment solicitors and not to delay especially if your employer has given you a date by which to accept the offer and return your signed compromise agreement. A number of employees that our employment lawyers are seeing are failing to appreciate the importance of their oiffer. At this stage it is only an offer and the offer could be withdrawn if you intend to and fail to accept it by the prescribed time.

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

© RT COOPERS, 2010. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.

Employment Lawyers – Compromise Agreement – Employment Lawyers London – Empolyment solicitor – unfair dismissal

admin — Tue, 20 Jul 2010 13:55:54 +0000

As employment lawyers, we have been advising many employees this month on their offers. On a practical note, if you are an employee and have been offered a severance pay, before you decide to reject this offer and claim unfair dismissal, please take advice on the offer. In a number of cases, we found that employees would have been worse off if they went to the Tribunal with a claim for unfair dismissal. There is a limit for compensatory awards (unless you can prove discrimination) which as it stands is £65,300.00. An employment solicitor at RT Coopers (0207 488 9947) will be able to advise further on this point.

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

Employment Lawyers, Voluntary Severance

admin — Tue, 13 Jul 2010 23:19:52 +0000

If an employee agrees to take voluntary severance, the employee may have a 3 – 6 month’s notice period. The employee’s employment would end at the end of the notice period (‘the Termination Date’) by mutual agreement. It is usual practice to place the employee on garden leave up to and including the Termination Date.

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

Employment Law Advice – Employment Lawyer – Compromise Agreement – Employment Solicitors

admin — Sun, 27 Jun 2010 21:55:20 +0000

It is important to note that a contract of employment must include at the least the statutory minimum notice period. Where an employment contract contains a notice period that is less than the statutory notice period, this clause would be void. The current statutory minimum notice periods are as follows:

One week if the employee’s period of continuous employment is between one month and two years;
One additional week for each full year of continuous employment between two and 12 years;
12 weeks if the period of continuous employment is 12 years or more.

The statutory minimum notice period can be lengthened by contract, but cannot be shortened.

Employers often reserve the right to pay an employee in lieu of giving notice (payment in lieu of notice or P.I.L.O.N) and must adhere to at least the statutory minimum notice if a longer notice period is not provided in the contract of employment.

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

Employment Lawyers Compromise Agreements – Severance Compensation – PILON

admin — Sun, 13 Jun 2010 09:18:23 +0000

We are receiving a number of enquiries where employers are only offering employees Payment in Leiu of Notice (PILON) as their compensation for loss of employment.

Typically employers are paying Severance Compensation as follows:

The employer will on its own behalf, and on behalf of all its associated companies, without any admission of liability whatsoever pay the employee £[anything up to 12/18 months salary] as compensation for loss of employment and in respect of the employee claims, less such deductions for tax and employee National Insurance contributions as are required by law. This compensation is inclusive of a statutory redundancy payment of £[minimum statutory payment]calculated as follows: £380 gross weeks’ pay x [number of years] complete years’ service x [x] age multiplier.
In addition, the employer shall pay the employee the sum of £[contractual notice period] in lieu of the employee’s contractual notice period, less normal deductions for tax and National Insurance contributions.

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

Employment Lawyers – Payment in Lieu of Notice – Employment Solicitors – Compromise Agreements Solicitors

admin — Tue, 08 Jun 2010 11:36:06 +0000

Employees are constantly asking us whether their payments in lieu of notice (PILON) ought to be taxed. The answer is yes, theywill be taxed in the usual way plus national insurance will be payable. Any PILON will be included in an employee’s compromise agreement.

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

Compromise Agreements – Termination Payments including Payment in lieu of Notice

admin — Sun, 25 Apr 2010 20:31:08 +0000

Employees should pay particular attention to ex-gratia termination payments which are stated to include compensation for failure to give the employee the full contractual notice (of termination), due to the tax implications in respect of the contractual notice payment element.

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

Compromise Agreements – Banked Holidays

admin — Tue, 13 Apr 2010 10:33:45 +0000

Some employers are including banked holidays as part of the settlement payment for employees that are facing redundancy. Therefore, if you are an employee facing redundancy, please check with your employer to see whether banked holidays would be taken into account in determining your settlement payment.

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

Employment Lawyer – Termination Payment – Compromise Agreement – Redundancy Payments

admin — Thu, 25 Mar 2010 05:30:06 +0000

High earning top executives are definitely receiving higher pay outs. Such employees termination payment would typically comprise::

An amount as a redundancy payment (including a statutory redundancy payment (“Redundancy Payment”);
An amount as compensation payment for loss of notice of the Employee’s notice period (“Notice Compensation Payment”); and
An amount as compensation for loss of employment (“ Ex Gratia Payment”);

This payment is made without any admission of liability on the part of the employer.

The employee on the other hand will have to give certain warranties (see warranties section in this blog).

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

Employment Lawyers – Termination – Constructive Dismissal – Payment in Lieu of Notice (PILON) – PILON Payment or Termination Payment?

admin — Fri, 15 Jan 2010 15:17:06 +0000

Recent Case: Employment Law: Termination – Constructive Dismissal – Payment in Lieu of Notice (PILON) – PILON Payment or Termination Payment?

In this case of Clinton v HMRC [2010], an employer sought to terminate the employment of an employee and the employee sought to bring a claim for constructive dismissal against the employer. The employer paid the employee a ‘termination payment’ sum substantially the same as the employee’s entitlement by way of payment in lieu of notice (PILON). It was deemed by the Tax Chamber First Tier Tribunal (of the HMRC) that the payment was not made pursuant to a contractual entitlement but rather to extinguish the employee’s claim for constructive dismissal.

The significance of this decision was that the first £30,000.00 of the termination payment was therefore tax free, and the entire amount exempt from National Insurance contributions. The drafting of the PILON clause in this case is what caused much of the dispute.

It is important that PILON clauses in employment contracts are appropriately worded so as to ensure there is no discrepancy at such time as an employee leaves an employer’s employment.

If you require further information please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages: