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Employment Law News

Budget 2016: Amendments to taxation of termination payments

Anyone who has ever been party to a settlement agreement will most likely be aware that an employee gets the first £30,000 of any termination payment tax-free, with any excess subjected to income tax as normal. The current position is that, even for the portion of a termination payment which exceeds the threshold and is taxable, National Insurance Contributions (NICs) are not payable.

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Updates from the Employment Tribunal – awards and statistics

As of 6 April 2016, Employment Tribunal awards will increase. The maximum compensatory award will be the lower of a year’s pay and £78,962 (increasing from £78,335). The upper limit on a week’s pay, which is relevant to various calculations including statutory redundancy payments and basic awards for unfair dismissal, rises to £479 from £475.

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Brexit: The employment law implications

On 23 June 2016, British voters will determine whether the UK will leave the EU (also known as ‘Brexit’). Given that many UK employment rights are in some way derived from European law, what consequences would leaving the EU have on employment law?

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