Redundancy payments

aetc

Hi

I have some confusion over redundancy payments, particularly with regard to notice pay vs. notice period/PILON.

I have been working for my company for 10 yrs, ages 30-40, and face redundancy. My employer wants me to work another 2.5 weeks from being given redundancy. My contract states my notice period is 4weeks. The contract makes no other provisions with regard to redundancy.

Are these 3 areas of payments correct?

1. Statutory redundancy: 10 weeks' pay (1wk per 1yr service) capped at £380/week
2. Notice pay: 10 weeks' pay (1wk per 1yr service)
3. Notice period: pay for 2.5 weeks + PILON for 1.5 weeks, totalling 4 weeks as per 4 weeks notice period in contract

If I've got this wrong, please advise what I'm owed based on my circumstances.
Thanks

getmore4less

1. numbers correct, redundancy is from the termination date as if you had been given proper notice, so does the extra 10 weeks take you into 11 years?

2,3 are the same

Your satutory notice period/pay will be 10 weeks, if you work any of it you get paid the rest is PILON. all this is normaly taxable, allthough if not contractual(r custom ad practice) PILON may be tax free(upto a total of £30k includng redunancy)

If they say they want you to work a bit and then leave with 10 weeks PILON they are just giving you a bit more notice.

In this case you can negotiates the work time as part of the notice and if they are stil happy to pay the full 10 weeks you can get some of this tax free as increased compensation which can help if PILON is taxable.

anamenottaken

aetc wrote: »

Hi
I have been working for my company for 10 yrs, ages 30-40, and face redundancy. My employer wants me to work another 2.5 weeks from being given redundancy. My contract states my notice period is 4weeks. The contract makes no other provisions with regard to redundancy.

Are these 3 areas of payments correct?

1. Statutory redundancy: 10 weeks' pay (1wk per 1yr service) capped at £380/week
2. Notice pay: 10 weeks' pay (1wk per 1yr service)
3. Notice period: pay for 2.5 weeks + PILON for 1.5 weeks, totalling 4 weeks as per 4 weeks notice period in contract

You are entitled to ten weeks' paid notice. Clearly 2.5 weeks of that is being worked and therefore paid. The remaining 7.5 weeks is to be paid. Whether that is PILON (pay in lieu of notice) depends on whether you are being dismissed with a termination date after the 2.5 weeks or whether you will be an employee for those remaining 7.5 weeks but not required to turn up for work.

(The fact that your written particulars say your notice period is 4 weeks does not override your statutory right to 10 weeks notice from your employer. The right of the employer to have received 4 weeks notice from you will not have increased if it is not written in the contract.)