Section 413A | Exception for payment of certain legal costs ^F1

(1)This Chapter does not apply to a payment which meets conditions A and B.^F1

(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.^F1

(3)Condition B is that either—^F1

(a)the payment is made pursuant to an order of a court or tribunal, or^F1

(b)the termination of the employee’s employment results in a settlement agreement between the employer and the employee and —^F1F2

(i)the settlement agreement provides for the payment to be made by the employer, and^F1F2

(ii)the payment is made directly to the employee’s lawyer.^F1

(4)In this section—^F1

“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.