Turullois v The Commissioners for Her Majesty’s Revenue and Customs  UKFTT 672 (TC); (2014) EMPLR 060
First-Tier Tribunal, Tax Chamber
Judge Kevin Poole and
Tribunals may order ‘interim relief’ in complaints of unfair dismissal by reason of whistle-blowing or trade union duties. Such orders are made at an early stage in proceedings, before the claim is actually decided. Their effect is that the employee is entitled to continue to be paid until the claim is ultimately decided. They are only made if the tribunal considers the claim is likely to succeed. Payments under an interim relief order from an employment tribunal are payments in connection with termination of employment if the eventual remedy is compensation, rather than reinstatement or re-engagement.
T issued unfair dismissal proceedings. She claimed that the reason for her dismissal was that she had made a protected disclosure (ie whistle-blowing). She claimed interim relief which the tribunal ordered. At the full hearing, the employment tribunal concluded that she had been unfairly dismissed but not for whistle-blowing.
She settled the claim for compensation and then applied for repayment of the tax she had paid on the interim relief payments. The First Tier Tax Tribunal agreed with her that the payments were not payments under her contract of employment. They were made in connection with the termination of her employment and were therefore free of tax for the first £30,000.
Authoritative analysis of the rules governing termination of employment provides coverage of the...