Redundancy- regarding "payment in lieu of notice"

McKneff

as well as his 9 weeks PILON has he also received 9 week redundancy pay.
Plus any half weeks for any weeks over a certain age (i think it is 40 or 45)

ACAS has a good website.

cazziebo

I'm afraid that what you've said does spell out that his notice is taxable, as Little voice says.

Except in circumstances justifying immediate dismissal the notice we will give to you is as follows:" . It then proceeds to give the notices periods..

It then states: " The company reserves the right to pay salary in lieu of this notice.
(See Termination of Employment) ".

so the company can not give LESS than the statutory minimum so the notice periods detailed must match the nine weeks he is due. The contract also allows that the company can pay salary in lieu.

Looks like he will be taxed on it. Sorry that's probably not what you wanted to hear. https://www.acas.org.uk or https://www.berr.gov.uk will back this up

(Annie - think it's 41 where the entitlement rises to 1.5 weeks)

lrr_2

I was made redundant 2 years ago and lump sum was tax free but last pay cheque was taxed i.e outstanding pay, holidays etc.

McKneff

thanks cassiebo, i knew it was somewhere round about there.
makes a difference if you have worked for a company for 22 years and you happen to be 59

YorkshireBoy

NoreenOMS wrote: »

Do you know a website or anything that I can refer to, to confirm that is the case?

http://www.hmrc.gov.uk/manuals/eimanual/EIM12976.htm (and links within)

One amongst many...just search for "PILON".

NoreenOMS

Thanks all, doesnt look like we have much of a case then!

Does anyone have any advice regarding us being sure that a copy of the revised terms were never given to my husband, and he was not asked to confirm his consent to the new terms, as he wasnt even aware of them!

Would there be any gain to the company by including this clause in his contract?

LittleVoice

NoreenOMS wrote: »

Thanks all, doesnt look like we have much of a case then!

Does anyone have any advice regarding us being (1) sure that a copy of the revised terms were never given to my husband, and he was not asked to confirm his consent to the new terms, as he wasnt even aware of them!

(2) Would there be any gain to the company by including this clause in his contract?

(1) Always difficult to prove a negative. Though it makes life easier for them if the company could prove that the new terms had been received - perhaps by a notification that the new handbook was displayed on a noticeboard.

(2) Well, it would remove a breach of contract claim and simplify payment.