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(1)This Chapter does not apply to a payment which meets conditions A and B.
(2)Condition A is that the payment meets the whole or part of legal costs incurred by the employee exclusively in connection with the termination of the employee’s employment.
(3)Condition B is that either—
(a)the payment is made pursuant to an order of a court or tribunal, or
(b)the termination of the employee’s employment results in a compromise agreement between the employer and the employee and —
(i)the compromise agreement provides for the payment to be made by the employer, and
(ii)the payment is made directly to the employee’s lawyer.
(4)In this section—
“compromise agreement” means an agreement that satisfies the conditions regulating compromise agreements under the Employment Rights Act 1996 (see section 203(3)) or the Employment Rights (Northern Ireland) Order 1996 (see article 245(3));
“lawyer” has the same meaning as “qualified lawyer” in section 203(4) of the Employment Rights Act 1996 or article 245(4) of the Employment Rights (Northern Ireland) Order 1996;
“legal costs” means fees payable for the services and disbursements of a lawyer.]
Textual Amendments
F1S. 413A inserted (with effect in accordance with art. 10(4) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2011 (S.I. 2011/1037), arts. 1, 10(3)