Human Rights court upholds severance pay ruling vs Hungary
In a Tuesday decision, The European Court of Human Rights’ Grand Chamber has rejected an appeal against a decision awarding damages to a Hungarian national because her severance pay was taxed at a rate of 98%.
The appeal by the government of Hungary was against a decision taken by the court last June. The court ruled for the plaintiff, who argued that the 98% tax on the upper bracket of her severance pay was an unjustified deprivation of property, under Article 1 of Protocol No. 1.
The 98% tax is applied to severance pay of civil servants exceeding HUF 3.5 million. The plaintiff had been awarded €16,000 in pecuniary and non-pecuniary damages and €900 to cover court costs in the previous decision.
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