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Chapter EIM12960

Document Cited in Related
Vincent
Published date22 May 2014
Record NumberEIM12960
CourtHM Revenue & Customs

A common cause of complaint to Employment Tribunals under ERA is that of unfair dismissal. This means dismissal contrary to the provisions of ERA.

If a complaint is proved a Tribunal has first to decide whether the employer should be required to reinstate or re-engage the employee. If reinstatement or re-engagement is ordered under Section 113 ERA, the Tribunal order will specify the date of reinstatement (Section 114) or re-engagement (Section 115).

The Tribunal will also specify the amount payable by the employer to compensate for any benefit (including arrears of pay) that the employee would have had if he or she had continued as an employee for the period from the date of dismissal until the date of reinstatement or re- engagement. This sum is compensation for unfair dismissal and so is taxable only under Section 401 ITEPA 2003 so the employer should operate PAYE where the aggregate payments within that Section exceed £30,000 (see EIM13530). If, exceptionally, there is as a matter of fact continuous employment between the dates of dismissal and reinstatement or re-engagement ordered by the Tribunal, any payment for that period is taxable under Section 62 ITEPA 2003 (see EIM00600).This may happen where an employee is...

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