# Offest Ltd and taxable

**URL:** <https://forum.resolutelegal.ca/t/offest-ltd-and-taxable/5618>\
**Category:** Disability Insurance\
**Created:** [July 19, 2026, 5:47am UTC](https://forum.resolutelegal.ca/t/offest-ltd-and-taxable/5618 "2026-07-19T05:47:33Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![Samir](https://avatars.discourse-cdn.com/v4/letter/s/ea666f/32.png) [@Samir](https://forum.resolutelegal.ca/u/Samir)\
**Post date:** [July 19, 2026, 5:47am UTC](https://forum.resolutelegal.ca/t/offest-ltd-and-taxable/5618/1 "2026-07-19T05:47:33Z")

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Hi everyone I need help.

Grievance settlement offer.

Damages for relinquishing the statutory right to  
reinstatementre-instatement to a unionized job

Is this taxable or non taxable?  
Does this offset by long term disability insurance or not?

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**Author:** ![Caro](https://avatars.discourse-cdn.com/v4/letter/c/b19c9b/32.png) [@Caro](https://forum.resolutelegal.ca/u/Caro)\
**Post date:** [July 19, 2026, 6:22am UTC](https://forum.resolutelegal.ca/t/offest-ltd-and-taxable/5618/2 "2026-07-19T06:22:24Z")

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Hi Samir, I am sorry to suggest this but you will need to consult a lawyer who can go through the language of your LTD policy and your settlement agreement to advise. Your union might have what you need too.

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**Author:** ![anonymous1](https://avatars.discourse-cdn.com/v4/letter/a/77aa72/32.png) [@anonymous1](https://forum.resolutelegal.ca/u/anonymous1)\
**Post date:** [July 19, 2026, 1:20pm UTC](https://forum.resolutelegal.ca/t/offest-ltd-and-taxable/5618/3 "2026-07-19T13:20:23Z")

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What type of damages? Human rights damages? Punitive damages?

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**Author:** ![Samir](https://avatars.discourse-cdn.com/v4/letter/s/ea666f/32.png) [@Samir](https://forum.resolutelegal.ca/u/Samir)\
**Post date:** [August 4, 2026, 5:06pm UTC](https://forum.resolutelegal.ca/t/offest-ltd-and-taxable/5618/4 "2026-08-04T17:06:44Z")

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> [@Samir](#):
>
> Damages for relinquishing the statutory right to  
> reinstatementre-instatement to a unionized job

Damages for relinquishing the statutory right to  
reinstatementre-instatement to a unionized job

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<div class="post-metadata">

**Author:** ![Caro](https://avatars.discourse-cdn.com/v4/letter/c/b19c9b/32.png) [@Caro](https://forum.resolutelegal.ca/u/Caro)\
**Post date:** [August 4, 2026, 7:46pm UTC](https://forum.resolutelegal.ca/t/offest-ltd-and-taxable/5618/5 "2026-08-04T19:46:01Z")

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I know lawyers are notorious for saying it depends but honestly this is a really tricky area that trips a lot of people up. There may be an opportunity to negotiate it in a way that has different tax treatments or splits it across different tax years and if you have contribution room there may also be an opportunity to use RRSP room to delay or reduce taxes.