As part of the mediation process, the parties entered into a transaction agreement. The agreement provided, among other things, that the employer would reinstate employees “effective September 19, 2011.” What remained to be determined by the arbitrator was the amount of compensation reimbursed. In 2012, the arbitrator retroactively assigned staff members, from the date of their dismissal in February 2006 to the date of their reinstatement in 2011. b) Reimbursement of compensation under a law. Additional payment under a law is a payment made by an employer as a result of a contract, finding or agreement, approved or sanctioned by a court or administrative authority charged with enforcing a federal or regional law protecting a worker`s right to employment or wages. Examples of these statutes are: what does the term “counter-wage” mean in a transaction contract? In this case, the service period for which the lump sum payment was made is more than 3 years. Therefore, the payment on a constant rate of 36 months, i.e. June 30, 2019, when Mr. L. was entitled to request payment, is reinstated. The Court argued that the manner in which the term “counter-wage” was used in the settlement agreement meant that it concerned compensation between the date of dismissal and the date of rehiring. In addition, there is nothing in the wording of the transaction agreement to indicate that the arbitrator`s powers were limited to the award of a 12-month award, as required by the LRA.
The Court held that there would be no reasonable interpretation to include paragraph 194, paragraph 1, in the transaction agreement in the absence of a clear reference to the provision or similar language. Wage refunds, contractual benefits, deferred wages and arrears of wages resulting from pay or compensation are taxable, whether you receive them during or after employment or after the end of the employment. They may, however, request that these lump sum payments be deferred to the period of service for which they are made. If this period exceeds three years, the amount is re-elected at a constant rate of 36 months, which ends on the date of the right to pay or the last date of employment, depending on the previous date. The return-related lump sum payment request can be made when your return is filed. The Department of Internal Revenue will only repay the lump sum if it reduces your total tax debt. c) Repayment does not stagnate under a statute. If employers and workers agree without a mark-up, finding or agreement to be paid, approved or sanctioned by a court or administrative authority, the payment is not made under a law. This salary cannot be attributed to previous periods, but must be reported by the employer for the period during which it is paid. The lump sum payment would be re-entered at a constant rate for the 36 months that end at the end of the employment, since that date is before the payment date. Additional payments, contractual allowances, deferred wages and wage arrears are generally subject to payroll tax. You will know more about reporting these payments on your tax return and how these lump sum payments can be resounded.
This case underscores the importance of ensuring that transaction agreements are developed with care and precision. In the most recent case of Genrec Engineering (Pty) Ltd v Metal and Engineering Industries Bargaining Council e.a.  ZALCJHB 213 (June 17, 2016), the employer instructed its employees to participate in a beE actions incentive presentation. A number of employees (already notified in writing at the time) refused to do so and were then dismissed. Employees questioned the fairness of layoffs. In the arbitration proceedings that followed, the arbitrator found that the dismissals were materially unfair and ordered reinstatement (without cross-payment). The employer tried to verify the sentence. However, the parties agreed to the annulment of the award, as the minutes of the arbitration procedure had been deleted by the bargaining board.