Compensation for Loss of Office

Compensation for Loss of Office
A compensation for loss of office is a lump-sum ex gratia payment made to an employee or director when their service contract is terminated. This payment can be wholly or partly tax-free provided the employee is not entitled to the compensation under the service contract.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.