Continuing with Restrictive Covenants
An employer may restrict an employee with regards to clients:-
The employee shall not at any time during the period of twelve months from the employee’s termination date (provided that nothing in this clause shall prevent the employee seeking or doing of business which is not competing business):
either directly or indirectly, solicit, canvass or approach or [...]
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Where employees are senior executives, employers are reinforcing the non solicitation clauses in the compromise agreement even though such clauses are already set out in the employee’s contract of employment.
A restrictive covenant in relation to other employees might state:-
The employee shall not at any time during the period of twelve months from the date of [...]
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If you are on gardening leave and have been given a termination date for the termination of your employment, you may be required to notify your current employer if you have been offered a new job before the end of the termination date.
Usually once the employee notifies the employer, the employee’s employment would come [...]
Tags: Employment Lawyers London - Compromise Agreements Solicitors
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 [...]
If you are an employee, your employer may ask you to give a warranty in your compromise agreement that before the Termination Date you will delete irretrievably any information relating to the business or business contacts of the Employer that you have stored on any magnetic or optical disk or memory of any personal electronic devices, [...]
Tags: Advice on Employment Law - Return of Property to Employers
We are still being asked about taxation of Settlement Payment or some people refer to it as Termination Payment.
The correct advice is that the first £30,000 of an employee’s Termination Payment will be paid without deduction of income tax in accordance with section 403 of the Income Tax (Earnings and Pensions) Act 2003. If an employee’s Settlement or [...]
Tags: Compromise Agreement Solicitors - Taxation of Termination Pay
As we have discussed in this blog previously, an employee’s entitlements to any benefits such as pension rights (which will not be provided for in a compromise agreement) will cease on the employee’s Termination Date (see earlier blog).
Some companies are paying employees up to three months’ standard company employer pension contributions into the employee’s pension fund. As pension rights are not [...]
Tags: Pension Contributions - After Signing Compromise Agreement
Both employers and employees have to be aware of the completion date of a compromise agreement. In some cases the employer might put the termination date and the completion date as the same. This works if the employee is in the UK (not on holidays or travelling) and able to get the compromise agreement signed [...]
Tags: Completion Date when your Compromise Agreement becomes Binding
There are circumstances when an employee may be placed on garden leave before the employee’s termination date and the signing of the employee’s compromise agreement. If you are an employee and you find yourself in this situation you have to ensure that, during the period you are at home outside the office, you are still [...]
If you are entitled to a pension after redundancy, then this will be dealt with separately by your pension provider.
Pension rights are mentioned in your compromise agreement but no details of such rights would be included in the agreement.
You would still need to check that you are given the right entitlement by your pension provider. [...]