Backpay all taxed at top rate, but would have been taxed at standard rate. Revenue not budging.

This is something which, if it hasn’t been tested in front of a court already, surely will be before too long now that the tax rules have changed.

In circumstances where an employer has a contractual obligations to their employees, one of which is the time of payment, and due to a failure/breach on the employer’s part the employee ends up at a material financial disadvantage as a result of that breach, I would have thought it’d be actionable. But I’m no legal expert.
 
I still do not understand why it is not an issue for the employer. I have certainly seen my employer pay us for example “€500 after all relevant taxes etc., which would be different for each employee”. So that each employee got the same net bonus, irrespective of what tax each employee paid. So I think employers fully understand that net pay is all that matters to employees.

I wonder if Leper has ever seen this in the public service?

Would a reasonable employer realise that due to an error on behalf of the employer an employee was out about €5K take home pay. And if in addition if the employee is a vulnerable adult would the employer not make every effort to avoid the headlines??
 
@clambell a bonus is not regular pay and I’ve no doubt that ordinary pay scales reflect annual/weekly/monthly gross amounts.

[EDIT] and of course, employees can get an annual €500 tax-free via this scheme - [broken link removed]
 
Last edited:
You must log in or register to reply here.
Back
Top