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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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Brexit Immigration Advice

British Citizens in Europe

British Citizens and EU Member State Immigration Policy  Preparing for a “no-deal” Brexit Members of Parliament (MPs) have been unable to reach agreement and ratify the Withdrawal Agreement and Political Declaration reached between the British Government and the European Union. This is despite a new deal being reached between the Johnson government and the EU…

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EU Settlement Scheme Gathers Pace

Applications under the EU Settlement Scheme (EUSS) gathered pace in September 2019 with an additional 520,600 applications received by the Home Office. Overall the total number of applications received up to 30 September 2019 was more than 1.8 million. This increase in applications is most likely a consequence of the uncertainty in Parliament and the…

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The Queen’s Speech

The Queen has opened a new session of Parliament with a speech setting out her Government’s legislative agenda. Whilst the forthcoming Immigration Bill obtained an early mention, the speech contained very little on the specifics: “An immigration bill, ending free movement, will lay the foundation for a fair, modern and global immigration system. My Government…

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