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Tax Treatment of Wrongful Dismissal Awards

hand with pen writing the word TAX in a note bookTaxes change how much money ends up in our pockets and this truism also applies to wrongful dismissal awards. The way settlement money is lawfully characterized can have a big impact on how much goes to taxes and how much an individual gets to keep. In this post we will summarize the basic tax treatment of certain types of awards an individual might receive in a wrongful dismissal action.  

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Is my Employee’s Non-Compete Agreement Enforceable?

a pair of glasses on a page of textAre non-competes, non-solicitations and confidentiality agreements enforceable in Canada?  Aside from termination provisions, restrictive covenants are probably the clauses that give us employment lawyers the most to think about. A restrictive covenant is a contractual clause, typically in an employment agreement, that seeks to limit a former employee’s ability to solicit the employer’s clients and/or to compete for those same clients in the same area.

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