Tax Credits Act 2002 section 27

Rights of employees

Section 27 introduces Schedule 1 to the Act, which protects employees from being unfairly dismissed or subjected to other detrimental treatment in connection with tax credits.

• This section activates Schedule 1, which contains detailed provisions on employee protections relating to tax credits.
• Employees are protected from unfair dismissal where the reason (or principal reason) is connected with tax credits.
• Employees are also protected from suffering any other detriment short of dismissal in connection with tax credits.
• The practical effect is that employers cannot penalise workers for claiming or receiving tax credits, and any such treatment may give rise to employment law remedies.