Is a court award or a settlement taxable

[monkeyboy]

Hi

I know of a situation where someone is taking their employer to the LRC.

If the individual agrees a settlement for the unpaid wages is this taxable?

If it goes to a Judge and an award is made in their favour including costs, damages and the unpaid wages is some or all of this taxable?

She no longer works for this employer as you would suspect?

Thanks
MB

 

[pat127]

It looks as though compensation for damages awarded under specific pieces of labour law is exempt from tax but the exemption does not extend to arrears of salary/holiday pay. I suggest you have a look at the detail in :-




[broken link removed]