The recent cases of M Phillips and Tottenham Hotspur Ltd give support to a narrower interpretation of when termination payments derive ‘from’ an employment contract. Payments may not be ‘from’ an employment even where there is no breach of contract, or where the termination of employment is not enforced. This is potentially good news for both employees and employers. However, these are only First-tier Tribunal decisions, and relying on them may be dangerous for employers. Further, changes to the law already announced, and possible future changes, may limit the long term impact of these cases.
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