Payment in lieu of notice

Gavlaar

If I am being made redundant and the company pays me my 3 month notice period in lieu of working, will I be eligible for unemployment benefits after my last day at work or will I have to wait for my 3 months notice period to expire before I can claim any benefits?

marlot

When it happened to me I was able to claim immediately. You need to check the compromise agreement carefully (if there is one) - it can be worded either that they are paying you in lieu of notice (your last day is immediately) or they are putting you on gardening leave (when your last day is the end of your notice period).

Prothet_of_Doom

My company refused to pay my 3 months money other than on the date it was due, as they were adament that HMRC would not allow it any other way, so I ended up paying NIC and Tax on it, and could not sign on for 3 months.
My union were unable to convince them, but said that if you are making 45 people redundant (10%) because of cash flow issues, they may not actually be able to fund paying all of them 3 months early.
On the upside, I went self employed on day 3, and was bring money in from day 22, so great knowing I was being paid twice.

(I was not entitled to a redundancy payment, although they offered to double that £Zero figure if I volanteered.)

anamenottaken

Prothet_of_Doom wrote: »

(I was not entitled to a redundancy payment, although they offered to double that £Zero figure if I volanteered.)

:rotfl::rotfl:

superwoman4

AFAIK you can sign on from day one of unemployment as the payment in lieu of notice is treated as capital along with any redundancy pay.
I know it didn't used to be the case and you had to wait to sign on.

Scorpio33

You sign on from when you are available to work.

So I would assume that they are allowing you to get another job from the day you leave, and so you would sign on the day you leave. Saying that, from personal experience the job centre will do anything to stop paying you benefits, so you need to make sure that the jopb centre are 100% aware that you are available to work, with no obligation to be available to your old employers.