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. The threat of dismissal prior to the commencement of any form of disciplinary proceedings in the event of refusal of the settlement agreement is also inappropriate behaviour and will reveal this to a court. It is likely that an employee wishes to file a complaint about this type of behaviour which, if not maintained, may lead to resignation and constructive wrongful dismissal. The question of whether the maintenance of a transaction will take place sooner or later is a call for the employer to stop, which compensates for the above factors. ACAS is an advisory conciliation and arbitration service. Firing an employee is an alternative way to end an employment relationship, but you can only fire an employee if there is a real situation of dismissal. This is something that, in my previous article, redundancies and how to go about it: advice to employers.
In some circumstances, you may be satisfied with a very fundamental factual reference, but a full descriptor reference on your skills and performance is usually preferable. The agreement should also specify that if your former employer is asked to speak orally about you or fill out a box form about you, the information they provide to you is no less favourable than the agreed wording. ACAS agreements are generally much simpler and less comprehensive than transaction agreements. There are restrictions for the types of claims that can be handled by an ACAS agreement….