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This area covers the sums and terms paid when an employment relationship ends, including severance, redundancy, notice pay, bonusses, pensions, and any sums agreed under a settlement or compromise agreement. A solicitor in this field helps by drafting or negotiating the exit payment package, checking the legality of the agreement, ensuring tax and National Insurance treatment is clear, and advising on any accompanying conditions such as garden leave or references. The work is shaped by the terms of the employment contract, applicable employment rights, and the risk of potential claims if the exit is not handled properly.
The stakes include ensuring the exit payment is accurate, compliant with employment law, and that any release or waiver is effective and properly scoped. A solicitor will highlight what is irreversible in the agreement, the tax treatment of the payments, and any rights that are or are not waived.
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