The Employment Rights Act 1996 ('ERA') sets out many of the
statutory rights which an employee has. It gives Employment
Tribunals power to order employers who infringe those rights to
make payments of compensation. ERA only applies in Great Britain
but similar legislation applies in Northern Ireland.
For compensation for unfair and wrongful dismissal see EIM12960.
The following payments that a tribunal may order an employer to make count as earnings under Section 62 ITEPA 2003 (see EIM00515):
Compensation paid for an employer's failure to consult employees
about redundancies (under the Trade Union and Labour Relations Act)
is taxable only under Section 401 ITEPA 2003 (see
On making any of the above payments, the PAYE Regulations apply.
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)