Redundancy insurance & PILON

spire2003

I was made redundant in July. No problem with that. I had no notice but didnt contest it when my employer responded to an email i sent him questioning reasons for redundancy. In the email he said he was paying me the equivalent of 10 weeks wages as redundancy. He then said doing it this way i would incur no tax. As i had only worked for him for 3 years i accepted this payment. I received my P45 which showed a leaving date of 15th July. I had taken out redundancy insurance so made a claim. I had a 60 day deferral period & expected payment 30 days after that. When i contacted the insurance company to see why i hadnt received my first payment they told me my ex employer had completed the form they sent him. On the form he said he had paid me 10 weeks PILON !!!!!! That being the case my defferal period would not start until 28th September. It means i will now receive no payment until late December instead of mid October. How can i get the insurance company to accept my version of events. They have a copy of my P45 & redundancy letter. This letter consists of three lines & basically says banking of cheque means acceptance of his offer. The only thing they dont have is a copy of my email & his reply. Any advice would be appreciated.

spire 2003

Willsnarf1983

whats pilon?

Will

spire2003

payment in lieu of notice :rotfl:

Andy_L

Contact your old boss & tell him he's ticked the wrong box, considering that if he's said PILON you are liable to income tax &, IIRC, he is liable for employers NI contributions

spire2003

Problem contacting old boss and telling him he ticked wrong box. Insurance company rang him when i queried why no payment. They even put me on hold and rang him. He told them on the phone he had paid me 10 weeks in lieu of notice. He is not a very good boss when it comes to fulfilling his obligations. He would have completed the form without studying it. I dont know how to approach him to tell him he got it wrong. If he has paid me payment in lieu of notice i have not paid any tax or ni & have spent my redundancy pay. Is there anything i can threaten him with ????????????

DVardysShadow

Do you still have the emails? This should at least show that you had good reason to believe it was redundancy.

Try the nice approach before threatening. But when it comes to threatening, I believe he would be liable to pay PAYE and NI shortfall if it was not redundancy. So he might want to wake up his ideas before insisting it way PILON.

If you have evidence it was redundancy, you could try suing him for the loss of redundancy insurance. Again that might focus his mind.

spire2003

I have emailed my old boss the problem & he has said he will speak to the insurers. He reckons it was a mistake or a misunderstanding. He not saying whos. I mentioned tax & nat ins has not been paid. I also said if it was notice payment i have had then he must still owe me my redundancy pay !!!!!!!!!!!!!!!! I also told him this mistake / misunderstanding has cost me £1500.

spire2003

Sorry i forgot to say, yes i do have all the emails !!!!!!!!!!

spire2003

Just had email from boss saying he has spoken to the insurance company. In his email he says the insurance company said i would have to sign a compromise agreement. Anybody know what this means ????????