Autumn Statement – Employee Shareholder Status tax exemption stopped

Introduced by the Coalition in 2012, Employee Shareholder Status allowed companies to make highly skilled employees – or any employee - a shareholder. For at least £2,000 worth of shares, which were both income tax and capital gains tax exempt, the employee would give up some employment rights, including unfair dismissal rights, the right to [...]

Can the Employment Tribunal set aside a settlement agreement?

Welcome back to Case of the Week. Last week’s bumper newsletter examining NMW rates, the apprenticeship levy, ACAS tattoo guidance and modern slavery. This week’s case will be looking at settlement agreements. We recently covered a case that said without prejudice discussions could be admitted as evidence if they are not labelled properly and this case goes further by [...]

Future Changes – All will be revealed

April is the time when most employment law changes are rolled out. We won’t be giving too much away but this years’ changes include: - The Introduction of gender pay gap reporting - The introduction of the living wage - Changes to the minimum wage - Changes to income tax thresholds - The Immigration Bill - Frozen sick and [...]

Top Gear sage – Settlement reached

This month's newsletter should have come with the subtitle - A Tale of Two Jeremys. After nearly a year Jeremy Clarkson has apologised to producer, Oisin Tymon, and agreed to pay him (in joint with the BBC) £100,000.00 to settle any racial discrimination and personal injury claims. By settling out of court the BBC and [...]

How to treat settlement sums after redundancy pay

This tax case asks whether the £30,000 tax free exemption on settlement agreement sums is applicable if the employee has already received redundancy pay? Mr Moorthy, the Claimant, was made redundant by Jacobs Engineering Ltd. He received £10,000 in statutory redundancy pay but then bought unfair and age discrimination claims against Jacobs. The claims were [...]

Should settlement agreement payments give award break downs

Round two. This case deviates away from employment law and instead focuses on tax law regarding settlement agreements. Before you nod off I would like to add that while the cases we cover in Case of the Week go to court, most claims are resolved out of court via a settlement agreement which is why [...]