Contractual payments must be made subject to usual deductions for tax and national insurance. Whereas a genuine ex-gratia payments are not made for work that has been undertaken or for a provision of services or under a contract of employment and are essentially compensation for loss of employment or a “gift” by the employer. Consequently they can be paid free of tax up to £30,000 pursuant to section 403 of the Income Tax (Earnings and Pensions) Act 2003.
It is obvious that employees cannot be physically forced to have the vaccine, so can they be disciplined/dismissed if they refuse? The CEO of Pimlico Plumbers (yes, them again!) has issued a blanket instruction to all staff: once the vaccine is widely available, they must have the COVID 19 vaccine if they are to stay…Read More