Buccini v. Canada, 2000 DTC 6685 (FCA) -- summary under Paragraph 6(1)(a)

Following the amalgamation of the taxpayer's employer with other Canadian subsidiaries of the U.S. parent, the taxpayer executed a settlement agreement with the employer in which he acknowledged that a payment of $83,900 was in full settlement of all claims arising from his employer's unilateral termination of the employee stock option agreement between the taxpayer and the employer. In finding that the sum was not taxable under s. 6(1), Malone J.A. noted (at p. 6689) that it was "well-settled law that damages for breach of a contract of employment are not taxable under section 6".