ECH22002 - Settlement: Legally Enforceable Charge

All ECR settlements for money have to be concluded with a legally enforceable charge. There are two ways of putting in place that legally enforceable charge

  • by contract law or
  • through the use of statutory provisions

In the majority of reviews EC staff negotiate a Class 6 settlement. In all such cases letters of offer and acceptance must be exchanged to create a contract enforceable under contract law. See ECH21500 onwards.

But on rare occasions, usually those without co-operation, ECOs may have to proceed statutorily by making formal Regulation 80 determinations, Section 8 NICs decisions etc.