My employer and I mutually agreed to terminate employment contract and an agreed payout via a deed of release. My understanding throughout the negotiations to terminate our contract, was the payment made would be tax free. Payment was made as a dollar settlement to terminate. I challenged my employer on the tax on this payout, they refused to review. I don't understand why I have paid tax, therefore ended up with a payout figure of 14k (tax held) less than what I had negotiated in a deed of release. This deed mentions the payment as an ex gratia payment. It wasn't earnings, so why is it taxed? I may not have left my job if I knew the negotiated figure was not the figure I ended up with in my bank. Additionally, if they tax this payout as income, they paid zero super. Can't have it both ways. It's either income, which super is payable, or it's not income, therefore tax is not applicable.
how can I challenge what the employer has done?
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