In addition, not long after the Social Security Act was originally enacted, the Treasury Department promulgated a regulation stating that, for purposes of the payroll tax, "dismissal pay
" constituted "wages." In 1939, Congress overruled that regulation by statute, providing that wages did not include "dismissal payments which the employer is not legally required to make." In 1950, however, Congress repealed that provision, plainly indicating its view that the term "wages" includes severance payments.
In a telephone call to Arab News, Khaled Abu Rashed, a lawyer, said: "From a legal point of view, any employee can take the employer to court if he refuses to give him any outstanding dues, such as vacation pay, unfair dismissal pay
or end-of-term service benefits under the pretext that the employee is not under his sponsorship.
CAP ON UNFAIR DISMISSAL PAY
A 12-MONTH cap on compensation awards for unfair dismissal is to be introduced later this year, the Government has announced.
A PUB chain supervisor at Birmingham International Airport who was sacked for alleged cash till discrepancies has lost a compensation claim for "dismissal pay
Accordingly, welfare benefit plans, stock option plans, and plans providing dismissal pay
, termination pay, or early retirement pay are not nonqualified plans.
* Calculations for vacations, probationary status, staff reductions, dismissal pay
, holidays and sick leave that include time working for the "old" UPI.
* Dismissal pay
that increases with years of service, which union-covered employees currently do not have.