Redundancy & Unpaid Wages

sideswipe

Hi,

I'm hoping somebody might be able to clarify this for me.

I was made redundant on the 7th Feb without any notice, when the firm I worked for went into administration.

Since that time I have filled out an RP1 form to claim my redundancy & 90 days pay for the notice I was owed.

However, I am now due to start a new job on the 19th March, and a friend has put doubt in my mind as to whether I would still get the full 90 days pay in lieu of notice considering that I have now found employment.

If anybody could shed any light on this I would be grateful.

Thanks
Lee.

mellonicoley

Unless the new job is with the same group of companies as the old one, I don't see how that would matter..

zzzLazyDaisy

It matters because payment in lieu of notice is essentially compensation for the not getting the wages you would have earned, had you been allowed to work out the notice period under your contract. By earning during that period you are mitigating your loss. This is because you obviously couldn't have worked at the new job if you were actually still working out your notice at the old job. So one cancells out the other. (I'm not sure if I am explaining this in a way that is understandable?).

So strictly, if you are earning less in the new job you'd get the difference, and if earning more you just wouldn't get the pay in lieu. This is how it works in the corporate world.

Having said all that, it is possible that the govt just pays out on the claim without investigating that much. I really don't know whether that's the case or not.

sideswipe

zzzLazyDaisy wrote: »

It matters because payment in lieu of notice is essentially compensation for the not getting the wages you would have earned, had you been allowed to work out the notice period under your contract. By earning during that period you are mitigating your loss. This is because you obviously couldn't have worked at the new job if you were actually still working out your notice at the old job. So one cancells out the other. (I'm not sure if I am explaining this in a way that is understandable?).

So strictly, if you are earning less in the new job you'd get the difference, and if earning more you just wouldn't get the pay in lieu. This is how it works in the corporate world.

Having said all that, it is possible that the govt just pays out on the claim without investigating that much. I really don't know whether that's the case or not.

What you're saying seems to be correct, I did finally manage to find something that explains this in details.

Thanks for your help.