Compromise Agreement Solicitors & Lawyers » Payment of Normal Salary

Redundancy Pay, Employment Law Compromise Agreement

admin — Sun, 22 May 2011 18:47:49 +0000

Employees facing redundancy are finding that a number of employers are simply offering statutory redundancy pay. Some employers are just offering the notice period to employees as their redundancy pay.

Employment Law, Redundancy Law, Payment in Lieu of Notice, Employment Contract, Compromise Agreement

admin — Wed, 27 Oct 2010 10:47:10 +0000

We are revisiting the issue of payment in lieu of notice from a different angle this time especially in relation to redundancy. We are being asked by a number of employers and employees whether they could get around the issue of taxation of notice periods (PILON). One of the ways that we have considered to achieve this is to ensure that any payments are treated in the compromise agreements as severance pay and not treated as PILON. The revenue may still challenge whether the payments are severance pay or contractual rights and therefore subject to tax and NI contributions.

If you require employment law advice especially on your compromise agreement, please contact RT Coopers 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

Compromise Agreements, Employment Lawyers, Payment In Lieu of Notice

admin — Mon, 25 Oct 2010 15:25:23 +0000

This is a reminder that payments in lieu of notice are subject to tax and national insurance at the approved rates. We are still being asked whether this is the case by a number of employers and employees, especially employees about their employee rights.

If you require employment law advice especially in relation to your compromise agremeent, please contact RT Coopers at enquiries@rtcooperssolicitors.com

Compromise Agreement, Employment lawyers London, Negotiating a Settlement

admin — Wed, 13 Oct 2010 12:52:29 +0000

Our employment solicitors are finding that a numbe r of employers are offering employees compromise agreements in circumstances where there is no dispute and/or redundancy, but as a means of mutual agreement. The employer has to act fairly. The employee has to negiotiate a good package. It is worthwhile seeking legal advice from our employment lawyers in London at this stage to ensure that the employer is acting within the law and the employee is getting the best possible settlement.

If you require employment law advice especially on your compromise agreement, as we are specialist employment lawyers in London.

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 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 09:33:45 +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:

If you are Offered a Job during the Consultation Period

admin — Sun, 15 Mar 2009 16:53:30 +0000

Sometimes your employer may give you a compromise agreement, you may have got as far as obtaining independent legal advice, and you are offered a job during the consultation period. If you accept this job, you will no longer be entitled to redundancy payment. The compromise agreement will no longer be valid.

What does payment of salary in Lieu of Notice mean?

admin — Sat, 14 Mar 2009 11:04:52 +0000

A number of employees that we come across do not seem to know the meaning of payment in lieu of notice. What does it mean? It means that your employer is paying you upfront so you do not have to work out your notice period. So, for instance, if you have a 3 months’ notice period in your employment contract, your employer would pay you three months salary in lieu of notice. If you have a two month notice period in your contract of employment, your employer will pay you two months salary in lieu of notice.

In some cases, employees have received a year’s salary in lieu of notice. As always, this salary will be subject to the appropriate deductions of tax and National Insurance contributions (based upon the salary rates current at the time of notice).