• the question is to be determined objectively; • acceptance of a variation of contract should only be inferred from conduct where that conduct brooks no other reasonable explanation save for acceptance; • where the variation is wholly disadvantageous, acceptance is less likely to be inferred; • collective protest may suffice to negative any inference otherwise to be drawn even if the individual employees themselves say nothing; • an employer's reliance on inferred acceptance will be weakened where the employer represented that there was no variation of contract and thus that acceptance was unnecessary.
With thanks to Daniel Barnett's Employment Law Bulletin for its coverage of this case.
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Injury to feelings payments not taxable 25 April 2018
The Court of Appeal has ruled that a settlement payment for injury to feelings does fall within the tax exemption under the Income Tax (Earnings and Pensions) Act 2003.
With thanks to Daniel Barnett’s employment law bulletin for providing this case summary.
Was a settlement payment for injury to feelings taxable under ITEPA 2003 ?
No, held the Court of Appeal in Moorthy v HMRC.
Mr Moorthy agreed a £200,000 settlement package with his employer. Although no specific amount was agreed at the time, before the Court of Appeal the parties agreed that £30,000 was attributable to injury to feelings for age discrimination. Section 406 of the Income Tax (Earnings and Pensions) Act 2003 provided that no tax is payable "on account of injury... to an employee" . HMRC argued that 'injury to feelings' fell outside 'injury', as the tax exemption was only intended to apply to compensation for personal injury as opposed to injury to feelings. The Court of Appeal, noting that there were some unclear authorities on this issue, resolved definitively that injury to feelings awards do fall within the exemption, and hence no tax is payable. It went on to note that this issue is unlikely to occur again, as with effect from this tax year the tax statutes has changed to add that: "Although 'injury'... includes psychiatric injury, it does not include injured feelings."
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Timing of Notice of Termination 26 April 2018
Where an employment contract is silent on when notice is deemed to be given, when does notice of termination take effect?
Is it:
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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