Payment In Lieu - Is It Compulsory For Me To Accept?

AndyBSG

The situation I am in is that I am redundant on May 13th and have three months notice which takes me to August 13th.

The company have told me they will actually be letting me go on 7th June with payment in lieu of notice for the remaining period.

However, the company bonus policy states that if I am employed on or after the 1st July I qualify for a pro rata bonus payment.

They are saying that as I am leaving before then I do not qualify. However, my contract and terms of employment do not make any mention of payment in lieu, it only mentions gardening leave which would still make me eligible for the bonus.

Am I within my rights to refuse the payment in lieu and insist that I remain employed or on gardening leave until 13th August which is the end of my notice period?

marlot

When I had something similar last year, I was told no - the company had the right to set the last date

McKneff

Do you have any idea how much the pro rata bonus would be.

Is it anywhere near the amount of PIL you will be getting.

And no, you don't have any right to refuse. Only the company do.

LittleVoice

Payment in lieu of notice can be non taxable if it is not an option in your contract of employment and isn't customary.

It should be tax free because it is compensation for your not getting proper notice. It could be argued that the compensation should include getting the equivalence of the bonus as, by not giving you the notice to which you are entitled, you are missing out on the bonus.

questionss

Is there likely to be much bonus if the company is in the position of having to make people redundant?

TadleyBaggie

questionss wrote: »

Is there likely to be much bonus if the company is in the position of having to make people redundant?

I've been made redundant twice, both times the company was perfectly profitable and paying bonuses up to the point I left (and beyond).

getmore4less

one point on contractual/C&P PILON

Where PILON can be paid tax free it can also be paid NET of the tax/NI that would have been paid