Tax and Settlement Agreements

When a Settlement Agreement is entered into an employee can agree to waive their rights to bring a legal claim in return for a sum of compensation. Generally, up to £30,000 paid as compensation under a Settlement Agreement can be paid tax free.  But not all payments...

Vicarious Liability

Can an employer be held vicariously liable for the actions of its employees when engaging in horseplay? Possibly, but not on the facts of this case, held the Court of Appeal in Chell v Tarmac Cement And Lime Ltd. The Claimant was employed by Roltec Engineering Ltd as...

Grievances and Dismissal

Was a dismissal for gross misconduct relating to the raising of vexatious grievances which the Claimant refused to either pursue or withdraw, fair? Yes, held the Employment Appeal Tribunal (EAT) in the recent case of Hope v British Medical Association. The Claimant...

Protected Conversations for Settlement Agreements

Employers and employees can now (under Section 111A of the Employment Rights Act 1996) have a protected “off the record” conversation provided the purpose is to explore the possibility of a potential settlement agreement. This means that, subject to some...

Poor Performance – Settlement Agreement Calculator

Some employers may consider offering an employee a settlement agreement rather than experience the time and hassle of putting someone through a painful and time consuming capability or performance management process. If you have more than 2 years’ service with...