Redundancy - Calculating Weekly Pay & PILON

missjensa

Hi everyone.

I am being made redundant and have been offered 2 weeks actual gross salary (uncapped) per year of service (10 yrs) and my notice period is 10 weeks.

I have the meeting where all of this would be confirmed in writing on Thursday.

My questions are:

- How is weekly pay calculated for the purposes of a redundancy settlement? Is it simply gross annual salary divided by 52 weeks?
- I will be working some of my notice period, but not all of it. The exact division has yet to be determined. Am I right in thinking that I would be taxed & pay NI on the portion of the notice period I work, and that if nothing is specified in my contract about PILON, the balance of the notice period should be paid to me tax free as pat of the settlement?

Any advice would be appreciated.

Thank you!

getmore4less

Check your redundancy service is correct, when did you start? you add notice so it can take you over another year.

If salaried then /52 works for a weeks pay.

The ballance of a notice period can be paid at the net rate rather than gross as compensation allthough not all companies do that.

missjensa

getmore4less wrote: »

Check your redundancy service is correct, when did you start? you add notice so it can take you over another year.

If salaried then /52 works for a weeks pay.

The ballance of a notice period can be paid at the net rate rather than gross as compensation allthough not all companies do that.

I started on 18th Feb 2002, so have just completed 10 years.

Out of my 10 weeks notice it looks like I will be working 4 x weeks and getting paid for the remaining 6 x weeks. I am just not sure how far I can push in terms of asking for the balance of the notice to be paid tax free as part of the settlement, as the advice from what I have read is very mixed.....

getmore4less

Since the company can pay net even it is is tax free it can make no difference unless they are happy to pay gross.