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Ex Gratia Payments

A settlement agreement normally includes a payment made by the employer to the employee. A termination payment is sometimes also known as a compensation payment, severance payment (particularly in the US) or an "ex-gratia" payment.

Contractual payments must be made subject to usual deductions for tax and national insurance. Whereas a genuine ex-gratia payments are not made for work that has been undertaken or for a provision of services or under a contract of employment and are essentially compensation for loss of employment or a “gift” by the employer. Consequently they can be paid free of tax up to £30,000 pursuant to section 403 of the Income Tax (Earnings and Pensions) Act 2003.

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Remote Working

Back with a Bump: The Legalities and Practicalities of Agile Working

As the summer draws to a close, employers in all sectors are beginning to welcome staff back to offices and other physical workplaces. However, the pandemic has shifted expectations on all sides, with agile working (involving a mix of home and office working) increasingly becoming the norm in certain sectors. Recruitment Working from home has…

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CoronaVirus

Update: “Long Covid”

“Long Covid” refers to the fact that some people seem to suffer from the effects of Covid-19 for significantly longer than others, sometimes for weeks and months after first contracting the illness. Long Covid undoubtedly presents difficulties for employers managing staff absences and decreased performance or productivity from employees who are suffering from an illness that…

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Managing A Return To The Workplace

Today sees England move to Step 4 of the Government’s COVID roadmap.  Social distancing and mask wearing rules are no longer mandatory in public spaces, but the Government has failed to clarify what steps it expects employers to take before welcoming staff back to offices and other workplaces.  Managing a successful return to the workplace…

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