Sorry, I didn't appreciate the level of background info you might need.
My company and I agreed to a settlement after I brought a grievance claim against them. They were concerned about a possible claim for constructive dismissal. The compromise agreement refers to "the termination of employment by reason of mutual consent"
Section of compromise agreement pasted below ( this is starts as section 2 in original document)
1 Termination of employment
1.1 Your employment with the Employer and (except as provided in clause 8) the Employment Contract will terminate by reason of mutual consent on 4 July 2014 (‘Termination Date').
1.2 On the Termination Date you will cease to be entitled to any remuneration or benefits except as set out in this Agreement.
2 Payments and compensation
2.1 You will be paid your accrued salary and contractual benefits (including any relevant contributions to your personal pension scheme) (less PAYE deductions) for the period up to and including the Termination Date via payroll in the normal way after deduction of any sum due from you to the Employer or any Group Company.
2.2 Subject to and conditional upon the terms set out in this Agreement, the Employer will, without admission of liability, pay to you, within 21 days of the later of (a) the Termination Date, (b) the date of receipt by the Employer of this Agreement signed by you, and (c) receipt by the Employer of the certificate in the form set out in Schedule 1 signed by the Adviser:
2.2.1 £7,261.02 (less PAYE deductions) as payment of salary(1st July – 4th July 2014) and remaining contractual notice (7 weeks) and contractual benefits in lieu of your notice period;
2.2.2 £ 2,729.74 (less PAYE deductions) in lieu of accrued but untaken holiday entitlement;
2.2.3 £18,232.14 as compensation for the termination of your employment (‘Compensation Payment’).
Your P45 will be forwarded to you in due course.
2.3 The Employer and you understand that sections 401 to 403 Income Tax (Earnings and Pensions) Act 2003 apply so that the Compensation Payment can be paid without deductions for tax or employees’ national insurance contributions. You will be responsible for paying any further or other tax and/or employees’ national Insurance contributions that are payable.
3.1 You will submit your final expenses claim, together with all required supporting invoices, receipts and vouchers, to the Employer within seven days after the Termination Date and all expenses wholly, properly and exclusively incurred by you in connection with your employment by the Employer, up to and including the Termination Date, will be reimbursed subject to and in accordance with the Employer's policy on expenses.
4 Company car
4.1 Ownership of your company car Toyota Avensis (registration number FM12 xxx) (‘Car’) will be transferred to you free of charge on or before 4 July 2014. You will be responsible for insuring and maintaining the Car from that date. The estimated market value for the purpose of this transfer as at 4 July 2014 is £11,750. The Employer makes no representation and gives no warranty as to the condition, state or roadworthiness of the Car.