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Specialist Settlement Agreements advice for employees

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Employees normally have a clause in their contract saying how much notice they must be given to end the contract. Unless the employee is dismissed for ‘gross misconduct’ failure to pay the amount owed is known as ‘wrongful dismissal’. A claim for unpaid notice would include all other contractual benefits such as pension contributions and healthcare.

Employers who dismiss an employee in breach of contract can often forego other rights under that contract such as those preventing unfair competition and solicitation of staff and employees.

There is a statutory minimum entitlement of 1 weeks’ notice for each year worked up to a maximum of 12 weeks’ net pay.

In some cases, notice can be paid ‘in lieu’ (instead of working). Depending on the notice clause in the contract, this can sometimes be paid as compensation in which case it is not taxable up to £30,000.

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