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Notice period / statutory redundancy pay

Hi, I have been informed that my company are to net off my contractural notice pay against the statutory minimum redundancy that I am entitled to.

My understanding is that any Notice pay (PILON) is paid net of tax over and above the statutory redundancy pay.

Can they do this? Has anyone come across this before?

Comments

  • LittleVoice
    LittleVoice Posts: 8,974 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    They are not acting correctly. Whatever the statutory redundancy payment is is owed to you - tax-free.

    PILON is indeed a separate thing and therefore cannot have the redundancy payment set off against it. Whether it is paid after tax deduction depends on whether PILON is allowed for in your contract with your employer.
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