Pay in Lieu Notice and Holiday Pay

leaves1

I have just been made redundant as of 3 February 2010 and my employer has offered me Pay in Lieu of Notice (PILON) of 12 weeks, I have been with the conpany 20 years. In the claculation they have not included for any holiday pay - 6 accrued and 12overall to the end of the PILON period. (28 April 2010)

Direct Gov web site seems silent on holiday pay within PILON period and finding mixed opinions on various forums.

Can anybody advise me of what the situation is, am I legally entitled to all a)12 days as this up to the end of the 12 week period
b) Only the 6 days accrued to the date I was made redundant
c) or None as the employer can do what he likes

Advice would very much appreciated

regards

happywarmgun

I'm not certain on the legal position, but I was in the same position - argued my case and got it (so suspect the law was on my side or can't see why they would've caved so easily).

Assuming that the PILON is genuine PILON (i.e. your contractual notice period is 12 weeks) it seems reasonable to ask for your full contractual entitlement for that 12 week period. So figure out what your prorata outstanding annual leave entitlement would be to the end of of 12 weeks after 3rd Feb would be, work out your 'daily rate' and stick to your guns that you think you are entitled to it.

If they don't cave straight away get some legal advice.

getmore4less

you may find these lnks usefull the first covers what should be in your PILON payent.

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073791192

A PILON should cover salary - including any bonus required under their contract - until the end of the notice period together with the cash equivalent of benefits in kind, unless their contract says otherwise.

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1074415038&r.s=e&r.l1=1073858787&r.lc=en&r.l3=1073931767&r.l2=1073876974&r.i=1073791192&r.t=RESOURCES

the key point for holiday is in this second link

If a worker's employment is terminated, they have the right to be paid for leave accrued during the time of employment, no matter how short a period of employment. In such cases, holiday entitlement is based on the date they would have left if they had worked the full notice period, unless the employee agrees otherwise

leaves1

Many thanks for responses, will follow up and report back