When you are given a settlement agreement as an employee, it will normally contain a reference to a termination payment which can often be described in different ways eg compensation for loss of employment, an ex-gratia sum or an enhanced redundancy payment.
It can be quite confusing knowing exactly how your settlement amount has been calculated and for aiMac-hr to be able to advise you properly we will need to see certain things. You can help us by being organised and sorting all the relevant paperwork we will need.
Here is a useful checklist for you:-
- Employment contract (if you have one)
- Redundancy policy (if one exists)
- Your annual holiday entitlement
- Pension information
- Share options (if appropriate)
- Last 3 months payslips
- Form P60 to show your end of year tax summary
- Bous or commission scheme or rules
- Details of contractual or other benefits
We need all this information to be able to work out the correct values of your settlement agreement payment. Employers sometimes get it wrong (especially when calculating your notice and holiday entitlements), so it’s definitely worth checking everything properly!
Knowing your actual relevant start date and continuous employment with the employer is also vitally important and we will be asking you for that information too.
We will check and establish if your employer is proposing to end your employment without giving you notice (or full notice) and instead paying you in lieu. Several important things flow from this concerning the deduction of tax and national insurance. Your employment contract will also need to be checked carefully to see if your employer has reserved the right to make a payment in lieu based on your basic pay only.
Holiday pay must also be taken into account and we will check your entitlement carefully to ensure you are paid correctly.