A process compensating NHS Highland bullying victims has been branded “cruel” after it emerged settlement pay-outs could be as much as halved once taxed.
One former worker has seen an expected £25,000 sum cut to £13,000 and other former staff are believed to have suffered similar reductions.
NHS Highland said it was advised payments need to be taxed at source, although the action has been questioned by a legal expert.
The Healing Process was established following an independent review on allegations of bullying and harassment within the health authority.
The ex-employee said he was constructively dismissed from his job last June after being subjected to “stalking, defamation of character, physical, verbal and sexual assault and false accusations”.
An independent review panel (IRP) recommended he receive a payment of £15,000-£30,000, awarded to individuals that “suffered very serious harm”.
He said he and others believed settlements should be ex-gratia and tax-free up to £30,000.
The man, in his 30s, has been unable to work after leaving the health services after 10 years and said that with no income, he is unable to pay rent, buy food or receive therapies he needs.
“At this point I am not convinced it was ever about ‘healing’. It seems to be more about ‘here’s some money, be grateful and shut up, you’re making us look bad’.”
He has contacted HMRC about the issue.
Linda Kirkland, former director of operations for NHS Highland and a member of the support group No More Victims, said: “To wait a long time for a settlement and then see half of it coming off in tax just feels cruel.
”It feels like it’s yet another hoop that folk have to jump through. It’s a lack of compassion and kindness in helping people journey through what is another painful experience.”
Highland MSP David Stewart said: “I’ve also received contact from others involved in the healing process asking why compensation is being taxed, believing that it should be classed as ex-gratia payments.”
Noele McClelland, employment partner at Thorntons Law LLP, said: “It is difficult to see why the payments are being taxed in these circumstances.
“It is clear that these payments are to recognise the harm experienced by these individuals. Such payments are not normally subject to deductions for tax.”
Fiona Hogg, NHS Highland’s director of HR and organisational development, said: “NHS Highland has taken independent legal and tax advice and the payments for the Healing Process need to be taxed at source.”
An HMRC spokesman said: “We can’t comment on identifiable taxpayers.”
