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Holiday Pay and redundancy
Comments
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Hi there,
Finally checked my contract, it states "The company reserves the right to terminate this contract immediately without giving the notice required (3 calendar months) by paying to the employee salary (less PAYE deductions) in lieu of notice"
Does this mean a) I should receive 13 weeks PILON instead of the 12 weeks they have offered ? and b) does this mean I should not pay Tax or NI on this PILON either ??
many thanks for all your help .........
Your contractual entitlement to notice is three months and so you will receive three months' pay (presumably you are normally paid monthly). This does equate to 13 weeks pay. Contractual notice periods can be longer than the minimum statutory notice but never less.
As the PILON is reserved as a right by your employer, it is contractual - and therefore taxable.0
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