EIM13911 - Termination payments and benefits: example: section 401 ITEPA 2003: provider of the payment or benefit
Section 401 ITEPA 2003
An employee is dismissed with compensation of 拢50,000 on 3 November 2011. The employer does not meet the cost. Instead, it鈥檚 paid by the employer鈥檚 Canadian parent company. The employee never had a contract of employment with the latter.
Section 401 ITEPA 2003 applies to the 拢50,000 because the section applies whether the payment is provided by the employer, the former employer or by another person.