Hi if there's a case for unfair dismissal and The Applicant and the Respondent agree to fully settle the matter outside court - they agree to pay certain amount with Super
What is the right treatment in the payroll of this settlement? should it be processed as ETP? or Ordinary wages as the unfair dismissal case didnt prosper?
G'day @razelnavarrete 👋
As per the ATO guidance, compensation for wrongful dismissal is an ETP, as it's a payment in consequence of the termination of employment. It should be clarified in the Deed of Settlement?
Deanne
I would like more clarity around this as well. If they parties agree to settle before Fairwork decision and in that agreement the employee agrees to pay say $20k and do not admit liability and Fairwork has not substantiated the claim of unfair dismissal - is it a code R or code O? How is that decision made because is it a payment for unfair dismissal (not found 'guilty' of just accusation) or does it become an ex-gratia payment?
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