The income tax legislation contains special provisions that deal with the taxation of various kinds of termination, unused leave and related payments made to employees and certain other persons (eg their dependants). The special rules treat certain payments (or components thereof) as non-assessable non-exempt income and other payments (or components thereof) as assessable income. To the extent that a payment is assessable, it may be subject to a tax offset, which ensures that the rate of income tax on the payment does not exceed a specified maximum rate. The ML is also generally payable in respect of assessable payments. To prevent overlap with the FBT regime, no FBT is payable in respect of the payments discussed in this chapter as they are all expressly excluded from the definition of fringe benefit (ss 136(1)(la), (lb), (lc), (ld), (le) FBTAA).

The chapter analyzes the complex system of labour law sanctions against unlawful violations of employee obligations, consisting of statutory laws, collective agreements, agreements of the parties and unilateral sources issued by the employer. The chapter looks at various forms of liability of the employee, and the responsibilities of the employer are discussed in detail. The employer may use disciplinary measures extending from warning and disciplinary sanctions to termination of employment. However, the employer and the employee may be liable for third-party damages and fines by public authorities, which must be paid in accordance with national rules. The chapter discusses opportunities and weaknesses of labour law in the particular context of cartels and antitrust rules. The author concludes that as regards sanctions against rogue employees for cartel actions, the employer has several choices depending on the strength of the sanction and its legal nature. Labour law focuses primarily on the protection of employees in these fields, but the employer is also entitled to proper protection against unlawful activities of rogue employees in case of cartel actions.