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This useful book explains clearly and concisely the ways in which payments on termination of employment are calculated and taxed. Identifying and clarifying the key issues involved, it goes on to set out the factors taken into account by the courts and industrial tribunals in assessing payments following unlawful or unfair dismissal. The relevant tax and company law provisions are reviewed, together with employees' rights in company insolvency or transfer of undertakings, social security benefits and payments to directors. This edition takes full account of case and statute law, including Polkey v A E Dayton Services Ltd, Babcock FATA Ltd v Addison, the Companies Act 1989, and the Finance Acts of 1988 and 1989.