Effect of Payment in Lieu on Termination Date

gbmauger

My employer has just made me redundant. I am lucky enough to have a 12 month notice period and a final salary pension based on years of service. They intend to give me a payment-in-lieu of notice (PILON) and I will stop work at the end of this year. I am arguing that my termination date should be the end of next 2011 not this 2010. I think this will give me an extra year of pension benefit. Does anyone know the legal position and can you point me to any tribunal/court cases on the subject?

Also can I insist that I work my notice and get the extra year benefit that way?
Thanks
Rob :eek:

getmore4less

First place to look will be your contract.

Is the PILON contractual or not that might make a difference or outline what the payments are.
If not contractual you may be able to make a case for full compensation, or work the notice or take garden leave
If contractual not sure if you can make a case unless the contract is not clear on what will be paid.

AIUI normaly the termination date for service based benifits is the actual date you finish.

For redundancy calculations the relevent date is different,
AIUI section 5 in the following applies(unless subsiquent legislation has changed this) to the sections 155,162,227

http://www.legislation.gov.uk/ukpga/1996/18/section/145
http://www.legislation.gov.uk/ukpga/1996/18/contents

So with PILON the statutory notice(up to 12 weeks at 12+years) is counted towards a calculation of service for stautory redundancy.

Pete111

getmore4less wrote: »

First place to look will be your contract.

Is the PILON contractual or not that might make a difference or outline what the payments are.
If not contractual you may be able to make a case for full compensation, or work the notice or take garden leave
If contractual not sure if you can make a case unless the contract is not clear on what will be paid.

AIUI normaly the termination date for service based benifits is the actual date you finish.

For redundancy calculations the relevent date is different,
AIUI section 5 in the following applies(unless subsiquent legislation has changed this) to the sections 155,162,227

http://www.legislation.gov.uk/ukpga/1996/18/section/145
http://www.legislation.gov.uk/ukpga/1996/18/contents

So with PILON the stautory notice(up to 12 weeks at 12+years) is counted towards a calculation of service for stautory redundancy.

I second the above with the additional thought that you should also check the company policies and procedures (usually referenced in contracts) - it could be PILON is covered in these if not mentioned specifically in your contract.

If PILON is mentioned you are unlikely to be successful I'm afraid.

P

bondy01

Some years ago I was offered VR by an employer of over 20 years one December. A lot of my colleagues left at the end of that month with 3 months pay in lieu. I stayed until the end of April and still got 3 months pay in lieu. Recently found a letter stating that I was credited with those 3 months until the end of July in terms of the final salary pension scheme. However , it also says to receive this credit that I must not join an occupational pension scheme with a new employer (which I didn't). I think I may check on this to make sure those 3 months have been included.
edit: just checked my paperwork and it seems I hadn't been credited with those 3 months. I think a phone/e-mail is needed as I have been receiving the pension for over a year. Thanks for the heads up on this.