Redundancy payment and PILON - can they be offered as one single amount

danetredragon

Hi Moneysavers. My sister was informed at a meeting two weeks ago that her law firm would be making 4 or 5 secretaries (out of about 14)redundant and asked for any volunteers. I was sure she would not be considered as she has been with this firm for 20 years. Last Monday she was called to HR and told that she was being offerend part time work or redundancy. She was told that her redundancy would be £10,000 and a month's notice in lieu of payment. (She received nothing in writing). We discussed this and (for lengthy reasons) she decided to accept the redundancy. The next day she accepted the redundancy but as she has been with the firm so long I told her she was entitled to 3 months notice. Her last day was Friday and she queried the 3 months notice in lieu of payment. She was told that yes she was getting 3 months notice and that it was included in the 10,000 offered to her. She left work on Friday with a cheque for £10,000. Am I wrong to assume here that certain legal procedures were not carried out and, more importantly, that the £10,000 offered as redundancy pay cannot include her 3 months PILON? If there are any HR or legal experts out there - HELP! :mad:

getmore4less

She shoud have a full breakdown of the payment.

Any outstanding holiday?

What was she paid and how old was she.

ableandy

How old is your friend? Hopefully she is under 54 as otherwise she has been short changed, that is without the issuse of the PILON, which under certain circumstances should be taxed.

Can you work out how much she would be paid for 3 months, take that away from the redundancy money and let us know how much is left along with her age (service up to age 41 is paid at one week per year, service past age 41 is paid at one and a half weeks per year)