A new rule in the General Tax Code, introduced in the 2027 finance bill, would make most employment termination allowances taxable income, with exceptions for amounts below a specific limit set out in the Social Security Code. This change has sparked concern over the potential taxation of damages awarded to employees who have experienced workplace issues like sexual harassment, discrimination based on origin or age, and other forms of injustice. According to one report, employees who pursue legal action could be taxed on the damages awarded by a judge, even after a legal process that may take 5, 6, or 7 years. This situation is considered ethically challenging and legally questionable by some experts. The proposed changes might also affect how legal remedies for workplace injustice are applied, as the same compensation could be adjusted based on the taxpayer's individual tax rate. Social and prud'homal justice systems, which already face long delays and high appeal rates in civil cases, could be further strained. Previously, court-awarded damages and conciliation allowances signed by the President of the Prud'homal Council were seen as a means to repair workplace injustices, but this may no longer be the case under the new proposal. The revised wording of article 80 duodecies of the General Tax Code would classify any allowance paid when an employment contract ends as taxable income, except for the portion that falls below the cap defined in the Social Security Code. Specific allowances mentioned in various articles of the Labor Code, such as those related to company savings plans and retirement benefits, are also subject to this rule. The proposed article includes several exceptions and specific provisions for different categories of employment termination allowances, aiming to clarify which payments are taxable and which are not.