Open Navigation

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.

News

Skilled Worker Route

The new Skilled Worker Route will go live on 1 December 2020. This route replaces the Tier 2 Sponsorship scheme and is at the core of the new approach to UK immigration policy as the country prepares to leave the EU single market on 31 December 2020. The Home Office has now published an extensive…

Read More
US Immigration

Immigration 2021

We are delighted to announce that the Minister of State for Future Borders and Immigration has agreed to be the keynote speaker and panellist at the last of our virtual Immigration 2021 events on 30 November. As we approach the end of 2020, global mobility policy and practice is at an unprecedented juncture. Three exceptional…

Read More