Section 413A | Exception for payment of certain legal costs F1
From legislation.gov.uk
(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, orF1
(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, andF1F2
(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.