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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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Numbers Engaged in Early Conciliation Continue to Rise

Numbers Engaged in Early Conciliation Continue to Rise

ACAS, the statutory conciliation service, has reported a 21% increase in the number of Early Conciliation notifications it received in 2018/19. Making an Early Conciliation notification is the first step a potential claimant must take if they intend on issuing certain claims against their employer. Once the Early Conciliation notification has been made, ACAS will…

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MyGMPD

We are delighted to partner with MyGMPD as Subject Matter Experts to provide professional development training and content to Global Mobility specialists across a range of industries and companies. Launched in 2019, MyGMPD aims to provide a professional development programme to improve skills and specialist Global Mobility knowledge leading to accreditation and recognition. Our specialist…

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BritishAmerican Business Publication Launch

As part of our close collaboration with BritishAmerican Business (BAB) we have been working with them this Summer on their Trade and Investment Guide to the UK. With so much political uncertainty in the UK leading up to the 31st October Brexit deadline and the potential for a future trade deal with the US under…

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