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Tax The employee will have to pay
Tax and National Insurance on the damages
that they receive. Normally this is deducted
before the employee receives the damages. If
the damages are paid without deductions the
amount of the damages will be raised to take
into account the tax that will be payable.
Benefits Any social security payments that
the employee receives during unemployment
are deducted from the damages that they
receive. Unfair Dismissal Compensation
As already stated the damages that the
employee receives under Wrongful Dismissal
will reduce the amount of the Compensatory
Award under Unfair Dismissal by the same
amount. Amount of Loss. The employee has
to minimise their loss, this means that the
employee must:
- Actively look for work.
- Accept a reasonable offer of a job.
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The Interactive
Law Group