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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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Tier 2 Update

Changes to the Immigration rules – The T2G annual limit, PhD level occupations and the Shortage Occupation List Changes to the Tier 2 (General) annual limit and PhD level occupations The Tier 2 (General) category is a category used by sponsors/employers in the UK who are looking to recruit for a position that cannot be…

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“Global Britain” to attract more top scientists

UK immigration policy continues to be under the microscope on the national and international stages with wholesale changes planned over the course of the next 18 months. Some small policy shifts have already started creeping in, with the Prime Minister outlining Home Office plans to offer “fast-track processes” for leading scientists applying for visas to…

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Outlook 2020

Election 2019 Outcome What does the result mean for immigration policy and Brexit in 2020? The 2019 General Election produced a decisive outcome, resulting in a conservative party majority of 80 seats in the House of Commons. This means that the long period of political uncertainty is over and the future trajectory of Brexit, at…

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