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What to beware of when saying goodbye to staff

Recent employment law changes and developments are particularly relevant to employers managing negotiations and the financial entitlements of departing employees. Fiona McLellan reports.

Two businessman leaving an office buildingTaxation of termination payments.

Important changes to the way termination payments are taxed came into force on 6 April 2018, which are likely to have – unhelpful – implications for employers negotiating exits with employees.

The new taxation rules relate specifically to payments in lieu of notice (PILONs) in respect of employment which ends after 6 April 2018 and where the sums are paid on or after that date.

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