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Even if the parties have agreed that your settlement payment is not taxable, it is common for employers to require « tax compensation » under the settlement agreement. This means that if HMRC decides that a tax is due, you are liable for it. Compensation usually states that you must reimburse your employer for any taxes that hmrc charges your employer. ACAS stands for Advisory Conciliation and Arbitration Service. ACAS does not need to play a role in your settlement agreement, but it does offer employers and employees free arbitration and telephone counselling. And here`s the best. A good labour lawyer may be able to challenge the amount offered under the agreement and negotiate an increase – or advocate that the employer take the path of the compromise agreement in the first place. Many employers may be receptive to such requests if a reasoned argument is put forward and there is an appropriate legal basis. As the ICPD investigation revealed, the average time for management to process a compromise agreement is much shorter than it would be if the case were to be brought before a labour court. Commercial considerations therefore prevail, especially in the current financial climate. I have been offered a settlement agreement – do I have to accept it? Your employer will discuss with you what should be in the agreement, either in person or in writing.

ACAS agreements are generally much simpler and less comprehensive than settlement agreements. There are restrictions on the types of claims that can be settled with an ACAS agreement. For this reason, employers often prefer to use settlement agreements. Any agreement must be adapted to the facts and circumstances of the case. It is therefore difficult to adopt a coherent approach when drawing up a compromise agreement, although this approach can possibly be used in more general cases. The details and existence of a compromise agreement should be treated confidentially by third parties. The advice they give you is limited to the terms of the agreement – for example, that you understand what you agree with. They won`t advise you on whether this is a good deal or whether you could have achieved a better result if you had been in court. If you seek legal advice about a settlement agreement, but decide not to accept the terms offered, you may have to pay all of your lawyer`s fees.

Your employer`s obligation to contribute to your legal fees is only valid if you sign the settlement agreement. Your lawyer will explain the consequences. Your lawyer should discuss his fees with you before acting on your behalf. At Truth Legal, we can agree on a cost limit with you and ensure that there are no fees above this level without your express instructions. This means that the draft contract is « not registered » and cannot be presented to a court as evidence of a confession against either party. The legal concept of « without prejudice » is based on the principle that it is useful for the parties to express themselves freely when trying to reach an agreement. .

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