My wife filed in 2019 a wage dispute with the Ministry of Labour for Ontario for unpaid wages from her employer.  She won the dispute and the Ministry ordered the employer to pay.  The settlement amount was paid to The Ministry of Labour who then sent my wife a cheque in the amount of the settlement in 2019.

My question, is the settlement amount considered taxable income?  And if so how is it reported.  No tax was taken off the settlement amount.

Hope that someone can help.

Thanks