Unfair dimissal payments taxed?

tabath

My OH has a very good unfair dismissal case against her employer if as expected she receives her redundancy notice this week. Are unfair dismissal payouts taxed?

Also her consultation period has been very short. Basically 9 working days on next friday from when she was first told. There are also some other colleagues this has happened to - they think the company is rushing it through to try to get them off the books before year end. Is this sort of thing allowed?

antrobus

tabath wrote: »

My OH has a very good unfair dismissal case against her employer if as expected she receives her redundancy notice this week. Are unfair dismissal payouts taxed?

So long as they are less than £30,000, then no.

tabath wrote: »

...

Also her consultation period has been very short. Basically 9 working days on next friday from when she was first told. There are also some other colleagues this has happened to - they think the company is rushing it through to try to get them off the books before year end. Is this sort of thing allowed?

It depends on the number of redundancies that are proposed. If it's less than 20 then I think there is no requirement for any consultation period at all.

tabath

So she gets the first £30000 of her redundancy payout tax free and the first £30000 of any unfair dismissal payout tax free?

antrobus

tabath wrote: »

So she gets the first £30000 of her redundancy payout tax free and the first £30000 of any unfair dismissal payout tax free?

No there's only one tax-free £30k. In fact, I think that any payout for unfair dismissal would take into account any redundancy payments already received.