Discuss, analyse and give at least 2 example of each of case laws principle for loss of employement.
case laws principles on ‘compensation for loss of employement’
(a) it is payment for total abrogation of service. the service can be continuous employment or a contract for general hiring;
(b) it can be contractual or upon discretion of employer (moral obligation);
(c) the right to terminate the contract by employer would not be debarred the employer form making compensation for loss of employment;
d) the method of computation by reference to the age or years of service would not change the character of ‘compensation of loss of employment’ to ‘gratuity’;
e) it it payment to the employee as compensation for being deprived of profit which he is entitled, (a payment on deprivation of an expectation of employment);
f) it is compensation for loss of future earnings;
(g) compensation of loss of employment cannot be made in respect of employment or in respect of having or exercising the employment;
(h) the taxpayer must have real prospect of continued employment from contract to contract in order to receive payment for compensation for loss of employment;
(i) the termination of services is in accordance with the contract so that there is no premature termination of employment is not relevant.