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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.8 Payments and benefits on termination of employment /Components of the termination package / E4.826 Termination of employment—repayment clauses
Commentary

E4.826 Termination of employment—repayment clauses

Personal and employment tax

Under a settlement agreement (see E4.823), an employee may accept a compensation payment in consideration of his promise not to commence or continue litigation in respect of the employment or its termination. Such an agreement may also contain a repayment clause that requires the employee to repay some or all of the payment received if they then commence or continue such litigation.

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