Payments instead of termination (PILON), which were ex-Gratia payments, were tax-exempt as long as there was no contractual right to a PILON. However, this has not been the case since April 2018 and, in all cases, taxes must be paid, whether or not there is a contractual PILON. The taxable sum is called the post-activity notice (PENP) and is essentially the salary that the employee receives within an untreated notice period, net of the contractual PILON. The balance of the termination, if indicated as an ex-Gratia payment, will be tax-exempt up to the usual US$30,000. Employers can often offer an ex-gratia payment in a redundancy situation in order to terminate the employment without having to go through the expanded consultation phase. This payment would be in addition to the statutory starting salary you will receive if you are entitled to redundancy. Such a payment may vary in value, but it often corresponds to one month`s salary. This gives the employee time to look for a new job after the end of the job. In addition, an ex-gratia payment may also be beneficial for a short-term service employee who would generally not be used in court proceedings. In exchange for this ex-Gratia payment, you can offer to do nothing that you would rightly do, and that would cost them time and money if you advance. For example, you could offer: this means that even if you have less than two years of employment, which means that you do not have unfair termination rights (and therefore cannot really complain about an unfair dismissal process), you may still be able to get away with a monthly salary as an "ex-Gratia" severance pay. The transaction agreement should say that once it has been signed by all parties, it becomes "open", that is, the opposite of "unprejudiced".
In order to avoid any doubt, the employee is not responsible for payments or responsibilities resulting from the delay or delay of payment of the company. Why does the transaction contract contain a long list of irrelevant receivables? For example, you informed colleagues of your negotiations before seeing the confidentiality clause and they understood that you had to keep the existence of the agreement confidential. If you sign a clause that you have already violated (or if you violate the clause after signing) and your employer finds out, they may argue that they no longer need to respect their side of the bargain. You can refuse to pay compensation or even try to recover money they have already paid you. Ex gratia payments are also called "golden handshakes" or "golden boots." Keep in mind that legal allowances are paid tax-free, so effectively are part of your ex gratia payment, as long as the total amount is less than 30,000 USD. The nature of the circumstances in which an ex-gratia payment can be offered is this: In addition to the amount of the bill, an employer may also offer you an ex-gratia payment as a gesture of goodwill and show you that they recognize that you have been mistreated. Such an offer can also be made before a transaction agreement is reached, in order to make this option more attractive than applying for an employment tribunal.