PILON and SMP during Redundancy

loubs1

Hi

I am new here but wondered if anyone could help out?

I am 32 weeks pregnant being made redundant at the end of this week (all above board and legitimate and process followed) however I have been offered 12 weeks Pay in Lieu of Notice (PILON). Now, because I am within 11 weeks of due date, my SMP will kick in immediately (thats just the way the law lies!) and therefore my employer is saying that they are going to offset my SMP against my PILON... still with me?

For example, my PILON is say £6,000. My SMP during what would have been my 12 week notice period (although I am not working it) equates to say £2500. Therefore they are saying that they will pay me my £6,000 PILON lump sum MINUS the £2,500 as this will continue to be paid monthly as SMP (6 weeks at 90% and remainder at £124 of whatever it is). This then leaves me £2500 down but they are saying I am not entitles to SMP AND PILON. My argument is that my colleague (who is not pregnant) and is in the same situation will receive her full PILON with no monies offset. Although she won't be receiving SMP but surely thats my right to receive that anyway?

I have spoken to ACAS who said that if I worked my notice up until I had the baby (which is not possible due to babybeing due within 8 weeks) then as soon as baby is born then SMP would kick in and they would be able to offset the money for the last few weeks of my notice period. However the issue lies with the PILON clause as in effect, PILON "should leave a person in no less favourable circumstances that if they had worked their notice).

Any thoughts or experience would be very welcome

Thanks in advance

Newbiesw

loubs1 wrote: »

However the issue lies with the PILON clause as in effect, PILON "should leave a person in no less favourable circumstances that if they had worked their notice).
Any thoughts or experience would be very welcome

Hello loubs,
This is not my field but as you've no response yet and have asked for "thoughts" maybe this will kick it off as it is an interesting technical case and these are just my thoughts?
Think it has to be established whether PILON has to be paid based on your salary (regardless of your condition) or whether it is based on what you WOULD have been paid during those 12 weeks, in your case it would have been SMP/Part SMP?

The other point is to determine whether your Employers hands are actually tied up by Government rules (rather than trying to do you out of it), which do not like people receiving a "State" benefit and income as well, until the recent K.I.T. days were introduced, if you returned to work for just one day early or for one day training, a whole weeks SMP would be withheld from you. Similarly if some-one left this week with 12 weeks PILON, I believe there are some benefits you can't claim for 12 weeks as you've been paid for them "up front" even though unemployed/no salary coming in. It may therefore be Legislation saying you can have one or the other, not both?

Your employer would be the winner here as: not only is he paying less to you, he will be re-claiming at least 92% of the SMP paid to you from the Government.?

Even if it was possible to "withdraw" your SMP claim so your PILON was based on your salary (not SMP), it would mean you would only be better off by less than £100 if that £6000 figure was correct (which I'm guessing it's not, just an example?)

Newbiesw