I'm sure the answer is no but are there any circumstances when legal expenses can be deducted from a PILON when paid by the employee themselves
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If you're paying just the statutory redundancy, no deduction can be made as it's not considered "wages". If you are however making payments above that, you could technically deduct these, but ensure that you do have the correct contracts in place to avoid any dispute.
Why has the employee paid the expenses themself? Are the circumstances not such that the employer is obliged to pay or reimburse them?
£1k to go through the settlement agreement? Ooft! That seems... Excessive. As a yardstick; I went through redundancy in one of the most expensive cities in the UK, had a settlement agreement, disputed it, had 4 months of negotiations and the bill came to £1.3, of which I paid 800.
Why are the solicitors charging the company? Surely the settlement agreement states the amount that the company pays up until, the solicitor invoices that to the client, payable by the company and then invoices the client separately for their part of the costs; that to me would be the standard practice?
Well, anything that the employee pays is not deductible from earnings, as it is not an expense of the employment.