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Alan, We have a client who is working full time ( has no employment contract), and intends to cut back to 2/3 days a week due to ill health and wonders if he could get a Termination Payment. The general consensus is that he would have to “terminate” his employment completely to avail of the relevant conditions under S201 TCA ’97 for exemption. However, Tax Magic 2017 (P23, Termination Payments) states that you can get a termination payment “If you lose your job, or conditions are radically altered” . Could it be argued that the latter would be relevant in a case like this (but with contract)? Your thoughts would be appreciated. Many thanks Mary

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Asked on 5 July 2017 6:20 pm
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Subsection 5 of section 201 grants relief to payment to which section 123 applies. Among those are payments arising as a result of a change in the functions of the office or employment. I have always assumed that this refers to a major change that is forced on the employee and which changes the nature of the work which he has to do under his contract of employment – a change that might be interpreted as a breach of the contract of employment.The only time I ever saw a claim on those grounds was back in the 80s and the basis of the claim was that the employee’s contract had effectively been changed. I suppose you could make a claim and use the expression of doubt procedure to see if Revenue will allow it.

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Answered on 6 July 2017 6:32 pm