Let us help – ex gratia advice and support direct from Partners

What is ex gratia?

An ex gratia payment is an additional sum paid by the employer on termination of employment to compensate the employee for the loss of their job. This can arise as a consequence of various situations such as an unfair redundancy, a performance management process or because of discriminatory conduct.

The term ex gratia comes from Latin and literally means ‘by favour’, as it is not paid because of a legal requirement and usually is offered without admission of liability. In practice, employers offer an ex gratia payment to settle a dispute or to compensate for loss of employment following a restructure or redundancy and the payment is often contingent on signing a settlement agreement.

In all cases you will need legal advice to finalise the terms of a settlement agreement. However, it is worth getting legal advice from an employment law specialist in good time, because the amount of an ex gratia payment will vary and often the employer and the employee will negotiate to reach a figure that is acceptable for both sides.

Speak to top-level experts today

100% Partner level advice so you can get the highest level strategic advice tailored to your personal circumstances

Who can we help with ex gratia?

An ex gratia payment is expected to compensate an employee for any injury to feelings suffered and /or financial loss caused by the loss of employment. The payment is in addition to what is required under your contract of employment or a statutory redundancy payment. An employer will naturally try to pitch the lowest acceptable sum whereas an employee will seek to maximise the ex gratia payment to ensure an adequate financial cushion for the future.

Key features of ex gratia offer:

HMRC rules allow the first £30,000 of any ex gratia payment to be paid tax-free
Take early advice to put you in the best position to negotiate an ex gratia payment
An ex gratia should not contain any contractual payments
Get specialist support for your claim to make the process easier
Provide clear advice in plain English - no confusing legal jargon
Get representation across the UK - we offer telephone and video consultations
What the likely outcome will be

Get top-level legal support today

Before starting an ex gratia negotiation with your employer, you should seek legal advice to discuss your various options. We are always happy to arrange an initial call to discuss strategy and can work with you in the background to ensure you are able to propose an ex gratia payment in the most effective way. Alternatively, if your employer has made an offer to you, get in touch to arrange a free consultation.

By understanding your sector and your employment situation we are able to tell you what is and what isn’t possible – some employers won’t negotiate, while others will expect there to be some discussion about the amount offered.

What you can expect from us:

Guiding you to make the best choices for your case, using our specialist knowledge and experience of employment law and procedures.
Providing clear information on fees so that you have control of your costs right from the start.
Actively progressing your matter. Thanks to our focus on quality of service, not quantity of cases, your issue will get the attention it needs, when it needs it.
Keeping you up to date about your case. You shouldn’t need to chase us to find out what is happening.

We are exclusively a Partner only firm. This means you will receive advice from a solicitor who has decades of experience in employment law from the first call to the successful resolution of your case.

You need strategic advice that is tailored to your personal circumstances, which is likely to require a nuanced and smart approach.

We are proud that over our years of practice we have been able to change workplaces for the better and ensure that our clients achieve positive outcomes including substantial financial awards.

Speak to us directly and book your free consultation

Contact us

If you feel you have a case and want the best possible advice, get in touch with our team