4 June 1993 Memorandum (Tax Window, No. 32, p. 9, ¶2602)

Where an employee is dismissed, receives an arbitration award and is reinstated in his former position, then if the reinstatement is on a retroactive basis the amounts received in settlement of foregone salary will be included in his employment income even if he did not return to his former employer.

Where an employee is dismissed, receives an arbitration award and is reinstated to his former position, any amounts received as part of the settlement which are in respect of out-of-pocket expenses incurred by the individual will be considered to be a taxable benefit.