What is a protected conversation and can I get a settlement agreement from it?
Key Takeaways A protected conversation is a confidential discussion between you and your employer under section 111A of the Employment Rights Act 1996 to consider ending employment on agreed terms. Protected conversations can lead to a settlement agreement, enabling you to waive potential claims such as unfair dismissal in exchange for a financial package. Not […]
Do I pay tax on payment in lieu of notice in a settlement agreement?
Key Takeaways Payment in lieu of notice (PILON) is usually taxable under a UK settlement agreement and subject to both income tax and National Insurance deductions. If your contract includes a PILON clause, your notice pay must go through PAYE and will not form part of any tax-free settlement agreement payment. The tax-free element of […]
How do I know if my redundancy settlement offer is too low?
Key Takeaways Your redundancy settlement offer may be too low if it is below your statutory redundancy pay and fails to include notice pay, holiday pay, bonuses, or commission that you are contractually entitled to. Many employers add an ex gratia payment on top of your legal entitlements to secure a waiver of claims—a crucial […]
Constructive dismissal compensation calculator: estimate your payout, settlement value, and real-world options
Key Takeaways A constructive dismissal compensation calculator provides an estimate but cannot replace tailored legal advice on your unique entitlement or prospects. Constructive dismissal compensation in the UK is made up of a basic award, a compensatory award for lost earnings and benefits, and may include an ex gratia payment. Actual constructive dismissal UK payouts […]
Restrictive covenants after a settlement agreement: are non-compete and confidentiality clauses still enforceable in England & Wales?
Key Takeaways Restrictive covenants after a settlement agreement, such as non-compete and confidentiality clauses, can be enforceable in England & Wales if they protect a legitimate business interest and are reasonable in scope. Signing a settlement agreement does not automatically remove restrictive covenants from your original employment contract—they may continue or be updated, so careful […]
Employment tribunal compensation: how awards are calculated and when to consider settlement
Key Takeaways An employment tribunal is a legal process allowing employees to claim compensation for unfair dismissal, discrimination, redundancy, and other workplace disputes. Compensation at an employment tribunal is calculated using specific rules, including basic and compensatory awards, factoring in loss of earnings, employer conduct, and statutory caps. Our solicitors use our employment tribunal compensation […]
Discrimination claims and settlement agreements: when compensation may be negotiable for UK employees
Key Takeaways Discrimination claims and settlement agreements: when compensation may be negotiable for UK employees, involve complex calculations—covering loss of earnings and injury to feelings, often under the Equality Act 2010. Discrimination compensation is frequently uncapped and may include a tax-free element (up to £30,000), depending on payment structure. Offers for injury to feelings typically […]
Settlement agreement tax basics for UK employees: what is usually tax-free, what is not, and what to question
Key Takeaways The first £30,000 of most ex gratia and compensation for loss of employment payments under a settlement agreement is usually tax-free for UK employees. Statutory redundancy pay and genuine compensation for loss of office are generally included in the £30,000 tax-free exemption, but salary, holiday pay, PILON and PENP are fully taxable. National […]
Redundancy settlement agreements in 2026: what UK employees should check before signing this week
Key Takeaways Redundancy settlement agreements in 2026: what UK employees should check before signing this week include your notice pay, statutory redundancy figures, and any enhanced ex gratia payments offered. Signing a settlement agreement usually means waiving your rights to claim unfair dismissal, redundancy pay disputes, or discrimination, so it is vital to know exactly […]
Can your employer make you sign a settlement agreement after a protected conversation? UK employee rights explained
Key Takeaways You cannot be forced to sign a settlement agreement after a protected conversation—any settlement agreement must be completely voluntary under UK employment law. A protected conversation at work allows confidential pre-termination discussions, but you retain the right to refuse, negotiate, or take legal advice on any offer. If asked to sign a settlement […]
