Notice period AND statutory redundancy pay

old_motters

I have a 12 week notice period in my contract whereby the company has to give me 12 weeks pay and notice. If they lay me off, do they have to pay Statutory redundancy pay as well or instead of the notice payment?

getmore4less

Both.

the service for redundancy is based on termination date or date of notice + statutry notice if that would be later.
eg applies when PILON and close to another years service and statutory notice take you into another year

Statutory notice is 1 week per year at time of notice.


Note: layoff is not the same as being made redundant.

old_motters

That's welcome news and if they do make me redundant will double my payout.

getmore4less

Remember statutory redundancy is capped at £430 as a weeks pay.

qualifying weeks dependson service and age max 20years at 1.5x for each year over 41

karlosp77

also worth mentioning, that they will deduct job seekers allowance from your notice pay (not your redundancy pay)....whether you claim it or not....so it wont quite work out double, though near enough, as jsa is a laughable £67 a week.

getmore4less

karlosp77 wrote: »

also worth mentioning, that they will deduct job seekers allowance from your notice pay (not your redundancy pay)....whether you claim it or not....so it wont quite work out double, though near enough, as jsa is a laughable £67 a week.

That only applies if the NI fund pay the notice.

does not apply to companies paying PILON.

karlosp77

getmore4less wrote: »

That only applies if the NI fund pay the notice.

does not apply to companies paying PILON.

True, good point.
by the way, i see that a lot on here "PILON"....what does it stand for/mean?

voucher_fairy

PILON = Pay in leiu of notice

:T:T:T:T

:):):):)

Debt_Free_Chick

And you will only get PILON if you are not required to work that notice. If you have to work it, you get paid the same amount, but obviously you will be working.

Acc72

getmore4less wrote: »

Both.

Just to confirm :

eg. Notice period = 12 weeks
The employee has been with the company for 5 years.

How many weeks pay should they expect ?

getmore4less

Acc72 wrote: »

Just to confirm :

eg. Notice period = 12 weeks
The employee has been with the company for 5 years.

How many weeks pay should they expect ?

12 weeks notice pay.

5 years service for redundancy(maybe 6 depending on dates).

So 5 to 9 weeks capped at £430 depending on age and service.

The OP seems to assumed double rather than being on service as mentioned above.