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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
I assume that you mean a Settlement Agreement to leave immediately with a lump sum instead of working out your notice.
I have known it done before. The lump sum on redundancy has the first 30K tax free which is an obvious advantage to the departing employee than working out their notice under PAYE. The slight disadvantage is that for the departing employee is that there may be a short period for which they will not have their card stamped, to use an old expression. The employer will, of course, save on the employer's element of the NI for a similar period. The employee will not loose out if they apply for Jobseeker's Allowance immediately as the contributions are credited anyway.
I do hope that youi have found my reply of assistance.
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