Tax
The employee will have to pay Tax and National Insurance on the damages that they receive. Normally this is deducted before the employee receives the damages.
If the damages are paid without deductions the amount of the damages will be raised to take into account the tax that will be payable.
Social Security Payments
Any social security payments that the employee receives during unemployment are deducted from the damages that they receive.
Unfair Dismissal Compensation
As already stated the damages that the employee receives under Wrongful Dismissal will reduce the amount of the Compensatory Award under Unfair Dismissal by the same amount.
Amount of Loss
The employee has to minimise their loss, this means that the employee must:
1. Actively look for work.
2. Accept a reasonable offer of a job.
