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

Global Talent

On 20th February 2020 the Home Office will open the new Global Talent (GT) immigration category to new applicants from around the World. This is a further step in the development of an immigration system that is fit for purpose on 1 January 2021 when the UK leaves the EU Single Market. Replacing Tier 1…

Read More
Fast Track Visa

Brexit -What Happens Next?

An Historic Moment After three and a half years of extraordinary political tension and debate, the United Kingdom formally left the European Union on 31 January 2020, at 11pm. The British Parliament finally ratified a Withdrawal Agreement (“WA”) with the EU via the European Union (Withdrawal Agreement) Act 2020 in January. The European Parliament, in…

Read More

Migration Advisory Committee Report Published

The Migration Advisory Committee (“MAC”) have now published their report on “A Points-Based System and Salary Thresholds for Immigration”. Background In June 2019 the May Government commissioned the MAC to review the mechanisms for calculating future salary thresholds for employer sponsorship of workers from outside the Resident Labour Market. It also asked the MAC to…

Read More