Employment Rights Act 1996: Primary legislation governing statutory notice periods, unfair dismissal rights, statutory redundancy pay calculations, and basic employment rights. Section 203 specifically covers requirements for valid waiver of statutory employment rights, including the need for independent legal advice.
Equality Act 2010: Ensures protection against discrimination and requires that severance agreements don't discriminate based on protected characteristics. Includes specific considerations for age discrimination in severance packages.
Income Tax (Earnings and Pensions) Act 2003: Governs the tax treatment of termination payments, including the rule that the first £30,000 of genuine compensation for loss of employment is tax-free.
Companies Act 2006: Relevant when dealing with director severance and associated corporate governance requirements.
Working Time Regulations 1998: Regulates the treatment of accrued holiday pay in severance situations.
Protection from Harassment Act 1997: Relevant for provisions relating to the waiver of claims concerning workplace harassment.
GDPR and Data Protection Act 2018: Governs the handling of personal data and post-employment data protection obligations in severance agreements.
Contract Law Principles: Common law principles governing contract formation including consideration, capacity to contract, and the requirement for clear terms.
