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Case laws principle for loss of employement.

(a) it is payment for total abrogation of service. the service can be continuous employment or a contract for general hiring;
(b) it can be contractual or upon discretion of employer (moral obligation);
(c) the right to terminate the contract by employer would not be debarred the employer form making compensation for loss of employment;
d) the method of computation by reference to the age or years of service would not change the character of ‘compensation of loss of employment’ to ‘gratuity’;
e) it it payment to the employee as compensation for being deprived of profit which he is entitled, (a payment on deprivation of an expectation of employment);
f) it is compensation for loss of future earnings;
(g) compensation of loss of employment cannot be made in respect of employment or in respect of having or exercising the employment;
(h) the taxpayer must have real prospect of continued employment from contract to contract in order to receive payment for compensation for loss of employment;
(i) the termination of services is in accordance with the contract so that there is no premature termination of employment is not relevant.

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