How to calculate a settlement offer: step-by-step guide for employees
Key Takeaways Calculating a settlement offer involves adding statutory and contractual entitlements such as notice pay, accrued holiday pay and redundancy pay, plus any ex gratia compensation for loss of employment. The first £30,000 of an ex gratia payment under a settlement agreement is usually tax-free, but salary, notice pay and benefits must be taxed […]
Growth and Skills Levy 2026: How redundancy, redeployment, and settlement agreements change for tech, construction, and engineering workers
Key Takeaways The 2026 Growth and Skills Levy affects redundancy and settlement offers by making employers consider retraining and redeployment options before finalising financial packages for tech, construction, and engineering workers. If you face redundancy under the new levy rules, you may be offered levy-funded retraining instead of or alongside a traditional ex gratia settlement […]
UK settlement agreement tax rules 2026: what employees can claim tax-free under the £30,000 threshold amid 2026 HMRC updates
Key Takeaways The UK settlement agreement tax rules 2026 let employees receive up to £30,000 tax-free for genuine termination payments, including ex gratia sums and statutory redundancy pay. Payments such as outstanding salary, holiday pay, bonuses, commission, PILON or PENP are fully taxable and do not count towards the £30,000 tax-free threshold. Any settlement agreement […]
Redundancy vs negotiated exit in 2026: how to choose between enhanced redundancy pay and a higher settlement sum
Key Takeaways Understanding redundancy vs. negotiated exit in 2026 helps you select the right approach—enhanced redundancy pay or a higher settlement sum—based on your position and leverage. Enhanced redundancy pay may be negotiated, particularly where employers have not followed correct redundancy consultation or selection processes. Settlement agreements include ex gratia payments and typically require you […]
Payout for redundancy: statutory, enhanced and negotiated options explained
Key Takeaways Your payout for redundancy may include statutory redundancy pay, notice pay, plus enhanced or ex gratia amounts depending on your contract and negotiation. Statutory redundancy pay depends on your age, length of service, and weekly pay cap, with maximum limits set annually by the government. Enhanced or contractual redundancy pay can increase your […]
Garden leave: employee rights, pay, and settlement agreement strategy
Key Takeaways Garden leave means you stay employed and on full pay during your notice period but usually cannot start another job or contact clients. You are entitled to your normal salary, benefits, and holiday accrual throughout garden leave in the UK, including rights to a tax-free element of redundancy pay if eligible. Employers can […]
Whistleblowing settlement agreements 2026: how protected disclosure claims impact compensation and the ILA certificate requirements
Key Takeaways Whistleblowing settlement agreements 2026: how protected disclosure claims impact compensation and the ILA certificate requirements is highly relevant, as whistleblowing can substantially increase your compensation and change settlement terms. A protected disclosure (whistleblowing) means you may be entitled to uncapped damages and special protection under the Employment Rights Act 1996 if dismissed or […]
Discrimination settlement agreements in 2026: typical compensation ranges and key terms UK employees should review
Key Takeaways Discrimination settlement agreements in 2026: typical compensation ranges and key terms UK employees should review will help you understand if your offer is fair based on Vento bands and recent awards. Our solicitors can assess the value of your discrimination compensation, factoring in injury to feelings, financial loss, redundancy pay, and whether any […]
Same-day settlement agreement advice: why 24-hour independent legal advice certification protects employees under urgent exit deadlines
Key Takeaways Same-day settlement agreement advice ensures you do not miss urgent exit deadlines or risk losing financial compensation offered by your employer. A settlement agreement is only legally binding if you receive independent legal advice from a qualified SRA regulated solicitor, as required by the Employment Rights Act 1996. Our solicitors can deliver 24-hour […]
Settlement agreement tax: how the £30,000 threshold applies to redundancy and exit payments in 2026
Key Takeaways The £30,000 tax-free threshold for settlement payments applies in 2026 UK redundancy and exit deals, covering most statutory and ex gratia payments made on termination of employment. Any redundancy or settlement payment over £30,000 will be taxed under PAYE, and your employer must also pay Class 1A National Insurance Contributions on the excess. […]
