Compromise Agreements Solicitors & Lawyers » Payment of Normal Salary

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:

© 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 – 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:

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).

When would you get Paid?

admin — Fri, 13 Mar 2009 08:12:05 +0000

Your employer without any admission of liability will pay you within 14 – 60 days of the latest of the following occuring:

The Termination Date;
Receipt by your employer of the signed copy of your Compromise Agreement (signed by you and witnessed by a third party) and containing the Independent Adviser’s certificate (signed by an independent lawyer such as a lawyer at RT Coopers); and
Receipt by your employer of any property belonging to your employer that is in your possession.

Otherwise there might be a delay in receiving your redundancy payment.

Would you be required to take your holidays or be paid for untaken accrued holidays?

admin — Tue, 10 Mar 2009 19:31:44 +0000

Your employer may require you to take all of your outstanding holidays accrued up to and including the Termination Date (during the period prior to the Termination Date). Although some employers may be happy to pay you for the untaked holidays that you have accrued up to and including the Termination Date.

Payment of Normal Salary

admin — Sun, 01 Feb 2009 14:06:13 +0000

If you are about to be made redundant or have been made redundant and your employer has given you a Compromise Agreement to obtain legal advice from an independent legal advisor like RT Coopers, one of the points to appreciate is that your normal salary will be paid and taxed in the usual way.