Settlement agreements in employment—practical and tax issues
Settlement agreements in employment—practical and tax issues

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Settlement agreements in employment—practical and tax issues
  • Parties to the agreement
  • Settlement agreements in the context of a TUPE transfer
  • Waiver of claims (full and final settlement)
  • Claims that can and cannot be waived
  • Data subject access requests (DSARs)
  • Can the employer refuse to act on a DSAR?
  • Remedies
  • Can the employee waiver the right to make a DSAR?
  • Public sector employers
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: Brexit and IP completion day—implications for employment lawyers.

FORTHCOMING CHANGE (POST-EMPLOYMENT NOTICE PAY (PENP)): From 6 April 2021, an alternative PENP calculation will be available for employees paid by equal monthly instalments but whose post-employment notice period is not a whole number of months. Additionally, from the same date, PENP will be brought within the charge to UK tax for individuals who are not resident in the UK in the year their UK employment is terminated. The measures will be included in the Finance Bill 2020–21. For more detail, see Changes to the treatment of termination payments and post-employment notice pay for Income Tax: Policy Paper, Draft Legislation and Explanatory Note (21 July 2020) and News Analysis: Draft Finance Bill 2020–21—Tax analysis—Changes to the treatment of termination payments and PENP.

This Practice Note examines the practical issues that typically arise relating to an employment settlement

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