Settlement Agreement Meaning

Settlement Agreement Meaning

Most settlement agreements are intended to cover all types of claims you might have against your employer. This means that you waive your rights to assert legal and contractual rights for personal injury. Even if the parties have agreed that your settlement is not taxable, it is customary for employers to require “tax compensation” as part of the settlement agreement. In other words, if HMRC decides that a tax is due, you are responsible for it. The allowance generally states that you must reimburse your employer for all taxes required by HMRC from your employer. Typically, the transaction agreement also contains a confidentiality clause stating that the employee remains confidential about the terms of the agreement, the amount of the transaction, and the reasons for the agreement. .


Comments are closed.