Redundancy Payment?

Sharon140

Hi I am a long time lurker on this site and have picked up some valuable information along the way which I am really grateful for This is my first ever post so please be gentle :rotfl:

I and my colleagues are under consultancy for redundancy and yesterday we had our second meeting our jobs are gone at the end of March so we know its definite.

What I am querying is we had our redundancy figures yesterday and they were all worked out on our Net pay. Now we have been doing some research on this and cant find out if our employers can do this as we thought the figures should be worked out on our gross pay as Redundancy pay is supposed to be tax free up to £30,000 we have been on the ACAS and Citizen's advice websites and all their calculations are worked out on Gross. Does anyone know if our employers can do this?

Grateful for any advice you can give

Jarndyce

Yes you're right they should be based on gross pay.

SarEl

Are you sure you are talking about redundancy pay and not PILON? That can be net, not gross pay.

Sharon140

Is PILON the same as garden leave? if it is then I know its definitely Redundancy pay as I know I wont have any garden leave because we are having our final consultancy meeting at the end of Feb and the building closes at the end of March which will be 4 weeks. I have worked for the company for 4 years so I know I am entitled to 6 weeks redundancy pay but no garden leave.

agrinnall

PILON is not really the same as garden leave, it's Pay In Lieu Of Notice, and I think it has to be goven unconditionally (unlike garden leave, where they could call you back into work). Basically, if your contractual (or statutory if the contract doesn't specify anything) notice takes you past the time when the redundancy takes effect then they would have to pay you at least some PILON.