Plain language law

New Zealand law explained for everyone

CE 9: Restrictive covenants
or “Rules about payments for agreeing not to do certain work in the future”

You could also call this:

“Money received for leaving a job or position is taxable income”

You can receive income for certain situations related to leaving a job or position. If you get money for any of these reasons, it counts as income:

You lose your job or career.

You lose a position you held.

You leave a position you had.

You lose your status in a job or role.

This means if someone pays you to stop doing your job or to give up your position, that money is considered income.

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Next up: CE 11: Proceeds from claims under policies of income protection insurance

or “Payments from employer-provided income protection insurance are taxable income”

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