Depending on the rights and the basis of the comparison, the tax treatment (including return, source and tax payments from the employer and the worker) can vary significantly for a given settlement. As a rule, the employer pays the worker`s legal fees. This does not count on the £30,000 exemption as long as it is exclusively related to the termination of the employment relationship, is paid directly to the worker`s lawyer and there is a specific settlement clause to that effect. If you`ve been fired or expect to be fired quickly, you may be can negotiate a layoff package. It`s a good idea to seek advice from a California labor attorney to help you in these situations. Your lawyer can help you negotiate a higher severance package and can advise you on tax laws relating to your final payments. . . .