Settlement Agreements

McDonalds racism scandal – Manager cuts black employees hours

A McDonalds branch in Birmingham has had to have its burger and eat it after the manger was caught on video discriminating against black employees. The manager, Mr Khela, cut the hours of the branch’s 20 black employees due to apparent underperformance. When confronted by an employee he insisted this was store policy. Mr Khela […]

Changes to Tax Free Allowance – Termination Payments

Changes are being proposed by HMRC to the £30k tax free allowance on termination payments. If these proposals are implemented we will end up with Employees paying more tax on their termination payments and Employers paying more Employer’s NICS on termination payments. I would urge anyone with an interest in this topic to respond to […]

By |2015-07-31T11:40:39+00:00July 31st, 2015|Settlement Agreements|0 Comments

Zero Hours Contracts – Ban on Exclusivity Clauses

In our previous post ( ) we looked at some of the pre-election promises. Following the Conservatives winning a majority these promises are now being rolled out, firstly banning exclusive zero-hours contracts. Exclusivity clauses in zero hours contracts are an employer preventing casual staff working for another employer, even though they are not guaranteed […]

Jeremy Clarkson – Gross misconduct or mitigating circumstances?

  In case you have been living under a rock divisive Top Gear presenter Jeremy Clarkson has been suspended by the BBC. Whilst journalists have been investigating what a fracas actually is, (and how to pronounce it) the BBC has been trying to get to bottom of the incident in which Clarkson reportedly punched a […]

By |2015-03-25T12:58:45+00:00March 25th, 2015|Settlement Agreements|0 Comments

Tax and NI on Legal Costs in Settlement Agreements

It is very standard practice (although strictly not a legal requirement) for an employer to pay the employee’s legal costs in relation to legal advice about a Settlement Agreement. If the employer pays the legal costs directly to the employee who then pays his solicitors, the payment is subject to tax as it is treated […]

By |2014-01-27T10:45:07+00:00January 27th, 2014|Settlement Agreements|0 Comments

Compromise agreements – validity – independent advisers

The EAT case of Linda McWilliam & Others is a useful decision for any employers facing mass claims (in this case in respect of equal pay but could apply equally to redundancy etc) when they wish to direct employees to specific adviser(s) to sign off on the compromise agreements.  In this scenario, is the adviser […]

By |2013-08-20T08:34:14+00:00August 20th, 2013|Settlement Agreements|0 Comments

Consultation – ending the employment relationship

The government have published their response to consultation on ending the employment relationship and the cap on unfair dismissal awards:- “Businesses were generally supportive of the aim to facilitate the increased use of settlement agreements, and their concerns centred on seeking clarity and certainty about how the measure would work in practice, and guidance for […]

By |2013-02-04T14:54:49+00:00February 4th, 2013|Settlement Agreements|0 Comments

Disclosure of criminal convictions

The government have said that they intend to appeal through the Supreme Courts against a Court of Appeal ruling that it is a breach of human rights to require employees to disclose criminal convictions to employers. In the COA cases it is understandable why this conclusion was reached. By way of illustration, one case concerned […]

Offers of settlement

Tribunals are increasingly a battle of nerves for all parties. The facts of Konczak v BAE Operations illustrate that. Mrs Konczak brought a claim. She was offered £75k before the liability hearing. She turned it down. Her Solicitors then withdrew and she faced going into the hearing fighting the case herself against the employer who […]

By |2019-12-29T18:18:51+00:00May 10th, 2012|Settlement Agreements|0 Comments

Limits on Executives’ Pay

The BBC reports here that David Cameron has pledged to make it more difficult for executives to effectively award themselves disproportionately high pay rises. He has also promised to tackle large payouts for executives dismissed for poor performance. The latter posses an interesting question as often the reason executives receive large payouts is because that […]

By |2019-12-25T16:10:58+00:00January 9th, 2012|Pay Ratio Reporting, Settlement Agreements|0 Comments

Compromise Agreements and the Tribunal

There are some limited circumstances where even though you have signed a compromise agreement you can still bring a claim against your employer.  These are generally where the type of claim you have brought is not actually compromised within the greement (rare but possible), where the employer has misrepresented the position and you have a […]

By |2019-12-25T15:47:49+00:00November 24th, 2011|Settlement Agreements|0 Comments

Template Compromise Agreement

Some employers try to save money when producing compromise agreements by re-using one a lawyer drafted for them in the past. This can lead to an embarrassing situation where it’s not proof read properly and the name of the former employee from the original Compromise Agreement is left in the new Compromise Agreement when it’s […]

By |2019-12-25T16:19:01+00:00September 22nd, 2011|Employer Advice, Settlement Agreements|0 Comments

Can a Legal Executive Sign a Compromise Agreement?

Most Compromise Agreements are signed by solicitors, although Barristers can sign them and some union employees and advice centre employees. Occasionally the question arises as to whether a Legal Executive can sign a Compromise Agreement. The short answer is yes as long as they are a fellow of the Institute of Legal Executives practicing in a […]

By |2011-09-05T10:41:07+00:00September 5th, 2011|Settlement Agreements|0 Comments