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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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The Immigration, Nationality and Asylum (EU Exit) Regulations 2019

The Government has introduced before Parliament a Statutory Instrument (“SI”) with the aim of amending primary and secondary legislation to take into account the UK’s departure from the European Union whilst ensuring that immigration, nationality and asylum laws will continue to operate effectively until new legislation is approved by Parliament in due course. The Government…

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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 now rejected the Withdrawal Agreement negotiated between the British Government and the European Union three times. The Prime Minister has entered into cross-party negotiations with the Labour opposition with a view to reaching a parliamentary consensus on a way…

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Zero Hour Contracts

New Innovator and Start-Up Schemes

At the end of March 2019, the Government presented a Statement of Changes to the Immigration Rules (House of Commons paper 1919) which, inter alia, introduced two new routes of entry to the UK for foreign nationals wishing to establish new businesses in the UK: Start-Up and Innovator. Introduced under a new Appendix W to…

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