Redundancy - what benefits?

Testee

To try and clear up this question of the NI contribution payments during your lieu of notice period.

Whilst your lieu of notice period is in operation you can get a form from the Job Centre to get your NI contributions paid. The form doesn't seem to be very well known about and doesn't have a code number or anything - it is just a photocopied piece of A4 paper that asks for name, NI number and the periods of time you want to claim for. You need to provide as supporting evidence the letter from your employer stating the amount of lieu in notice payment and then your last two payslips so that they can work out and confirm the time frame covered by the payment. They will then pay your NI contributions for that period and you don't need to start signing on until this period has expired. The benefit of this is that for this period you don't have to turn up fortnightly at the Job Centre and after this time frame you get paid for the full 26 weeks if you are unemployed for that long.

The only time you should need to sign on as soon as you become unemployed is if you have redundancy insurance for your mortgage as I believe this requires you to be signing on to claim under the insurance policy.

karenj

PILON (pay in lieu of notice) is only taxable if your contract of employment states that it will be paid when employment is terminated, either by reason of redundancy or something else (garden leave for example). If this is not stated in the contract, then it can be paid free of tax. I think the limit is £30,000. This also applies to any ex gratia payment you may receive from the company. Most companies, however, do have a clause in the contract that states if employment is terminated by the company, you will be paid x weeks/months pay in lieu of notice (depending on notice period). When I was made redundant 4 years ago, I received an ex gratia payment free of tax, but my payment in lieu of notice was taxable as it was stated in my contract of employment.

almond

my partner gets finished 11th march after 26years and receives 12 l of notice payment, I have rang the job centre who told me to go to the tax office,
can anybody tell me what the form is called for getting your stamps paid.
thanks

YorkshireBoy

almond wrote:

my partner gets finished 11th march after 26years and receives 12 l of notice payment, I have rang the job centre who told me to go to the tax office,
can anybody tell me what the form is called for getting your stamps paid.
thanks

I was in exactly the same situation 2 years ago.

Sorry, can't help with the name of the form but its irrelevant anyway. Just walk in with your termination letter (showing all terms of your severance package) and you can fill the form in there and then.

HTH
YB

woodstock212

Hi, I will be made redundant next year after 25 years. Can anyone advise if I should use my "pay off" to settle my mortgage (am I allowed to do this) leaving me with little savings or do I keep the capital and continue making mortgage payments.
thanks

valleymatt

Hi there. I don't know if this is the right place to put this, but thought I'd give it a go.

I was recently made redundant after 14 years at the same company. 9 months before being laid off, I was called in by HR and told that I would be given a retention payment (of several thousand pounds) on top of my redundancy pay if I stayed with the company until the end rather than leave for another job before my official finishing date. Only about 6 people in the company were offered this, me being one of them.

Over the next 9 months, I did have a couple of job offers but turned them down because of the incentive of the retention payment. However, my company then turned round at the end of the 9 months and said that they had become insolvent, called in the receivers and told all employees that we would have to put our own claims for statutory redundancy in as the company could no longer pay us anything.

What I'd like to know is whether or notI have a claim against the company for the retention payment based on turning down other jobs and being given the details in writing beforehand. It's been frustrating for everyone throughout this ordeal, and this is just rubbing more salt into the wounds.

Any advice on this matter would be much appreciated. Thank you.

VM

SuziQ

I think both valleymat and OP would also benefit from a call to ACAS.When we lost a big contract 2 years ago (this company went bust on me this April owing me loads of wages so bit of a sore point!)I telephoned ACAS as to how to deal with our employees that came to us on TUPE contracts,but also advised the individual employees to get advice personally and they really were helpful-I was able to get the 4 TUPE employees jobs with the new contractor even though it wasn't strictly compulsory because of the advice,so they really will be able to help you both.

Iswalt

I do not know how to use this Forum properly am probably posting in wrong place. Been made redundant after 47 years of work. Have own house and no outstanding bills. Am concerned that any money I have will count against me. Do I need to sign on now? Am told will be required to give losts of info with little or no chance of getting any financial help. Prudence does not pay! Have package plus savings, Iswalt.