Pay in lieu of notice - when should this be paid ?

wolf475

Hi

Looking for some advice. I am currently in a 30 day consultation period and will be made redundant from my job on October 22nd. As I have only been with my employer for 18 months I do not qualify for a redundancy payment. I will receive three months pay in lieu of notice (as specified in my contract) which I understand is taxable.

My question relates to when I should receive this pay in lieu of notice. My company pay date is the 29th of each month - and due to payroll cut off dates my termination will not be processed until after the October pay run. I have therefore been advised that I will be paid in full for October on the 29th but will not receive my PILON until November 29th as the company do not make any payments other than on "normal pay dates".

Is this legal? Am I not entitled to receive my PILON as soon as they terminate my contract on October 22nd, or within a reasonable time - which I'd suggest five weeks is not.

thanks

motorguy

I cant see that its not legal but you could ask them to pull it all together into the one pay run?

Pete111

It's legal - they are not witholding payment unduly and given you would get Octs pay on the usual day + a lump sum in Nov you would not be out of pocket

however where the leaver is a 'good leaver' it is quite usual to pay this all at the same time given the closeness of the termination and pay dates (I would allow this). You may want to ask if this is possible on the basis that your termination date is so close to the Oct paday and you can get your P45 quicker (this will not be issued until the final pay date) and ensure loose ends are tied up to help you get on with your life.

P