SE12852 - Termination payments and benefits: compensation for loss of office or employment
SE13005 explains that “compensation for loss of office or
employment” is usually within Section 148 ICTA 1988, but that
payments are sometimes given that label mistakenly.
There is no set limit in law for such compensation. However,
if the payment or benefit appears to exceed what is payable as
damages (see
SE13070) then the nature of the payment
should be considered critically to find whether any part is in
substance paid for some other reason such as:
- a terminal bonus for services
- a payment on retirement
- a contractual payment
- a restrictive covenant
- a customary payment
See SE12810 for the legislation to be applied
