Redundancy today - PPI and JSA

chivers1977

My OH was given notice of redundancy today as a member of staff for Blackhorse Finance (lloyds banking group).

Luckily we do have PPI in place for £800 pm in his sole name which will pay out for 12 months and he will get garden leave for 3 months in addition to around £4k redundancy

Just wanted to check what happens:

1) notified today
2) garden leave starts 1st April
3) leaving date 1st-mid July

When would he claim JSA - april or july?
When would he claim PPI - after april or July?
Would he get PPI and JSA both paid out so making a total of just over £1k pm or would he just get PPI?(JSA for 6 months obviously)?

I have tried to google and search but not very successfully.

Thank you in advance

chivers1977

bumpety bump

Please can someone reply!

turbobob

I'm not an expert, but my understanding is you cannot claim JSA (nor commence employment with a new employer) if you are still employed by the company on "gardening leave". However if the employment was terminated on 1 April and he received payment in lieu of notice for the period from 1 April to whenever the notice period ended, then JSA could be claimed straight away. Bit of info I found on "gardening leave" law here. In my last company it was mainly senior management who this applied to.

For PPI you would be best to check with the insurer or your documentation. I suspect they will take into account any payment in lieu of notice (i.e. they probably won't cover this period) and they almost certainly won't cover it if a gardening leave arrangement is in place (as he would be receiving full pay and benefits).

chivers1977

Thank you for your help.

That clarifies it then as he will definitely be on garden leave according to the pack. He is/was in sales and this may have something to do with it. The pack says that they will leave the company in July so that will be when the claims need to go in. I just want to get the claims in place as soon as possible to ensure that no payments etc get missed

getmore4less

He should check his contact of employment about any restrictions doing other work. There is no law about not having two jobs but there may be restrictions in his contract.

If there are restrictions he should try to get them waived for any jobs that are non competative(eg: stacking shelves in tesco) or try to negotiate PILON to get released eary.

If his notice period is shorter that the 3 months and theire is no/small enhanced payments he may want to consider leaving early if another job comes up.

chivers1977

Thanks for your comments Getmore4less. As he will be getting £800pm mortgage payment insurance, he will not be taking a part time job as this would mean that he would not get the insurance payment and we would be worse off. THe insurance means that he can take the time to research and apply and find a job at the correct income level - luckily....

He also will not get the redundancy payment until after the garden leave leave runs out

getmore4less

But if he is required to take garden leave(so no JSA/PPI) for 3 months and they waive the restriction he can earn some money(possibly in a position that could lead to a good full time job) as well as look for a full time well paid job.

chivers1977

That's a point GM4L. I will put it to him.....

Thank you!