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This work covers negotiated severance payments and special compensation within the employment relationship, including enhanced redundancy payments, severance packages and settlement agreements. A solicitor in this area drafts, negotiates and finalises the terms of a settlement, reviews tax and NI consequences, and ensures the agreement releases the employer from future claims while protecting the client’s rights. The process is shaped by the timing of offers, deadlines, and the need to avoid inadvertent breaches of contract or statutory rights.
Settlement agreements and enhanced severance pay involve time-critical decisions and irreversible steps. A solicitor’s role includes ensuring the proper signing formalities, safeguarding confidentiality where appropriate, confirming statutory redundancy pay entitlements where relevant, and advising on the tax treatment and any post-termination restrictions that may apply.
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