Redundancy, Notice periods and pension benefits

balooney2000

My employment is being terminated on 3/2. My company admits it is in breach of contract and will pay damages in lieue of notice. I have no PILON clause in my contract and have a 13 week notice period and would like to know what should constitute damages.
My understanding is that it will cover 13 weeks salary (net) but what about annual leave that I would have accrued had I been able to work my notice or pension payments the company would have paid in to the pension scheme?
Thanks

getmore4less

holiday accrue to the date of termination

it is always possible to take any holiday that accrue during notice to be taken if you work the notice.

some companies will pay it but that is extra.

what is important is the statutory notice as this can increase service for redundany.

dangermousesuper7

Hi, just read this and have 2 similar questions. I'm being made redundant and was told yesterday that Friday is my last day. I am receiving statutory redundancy only, plus my notice period, which is 3 months.

For my 3 months' notice period, do they have to pay 3 x company pension contributions to my pension (I assume they will deduct my own contributions, but will double-check), and secondly, do they also have to pay holiday pay that I would have accummulated in the 3 months' notice period? Or, because I'm not working the notice period, do they not have to pay anything?!

Thanks, in advance, for any advice.

rxp

Regarding pension contributions, this will depend on the wording of the contract. A well-drafted (for the employer!) contract will say that the employer can terminate the contract by making a PILON of basic salary only. Then you have no argument that pension contributions should be included.

If there is no PILON clause, you have at least a decent argument that the pension contributions should be included (although they would be entitled to insist on making the appropriate deductions for employee contirbutions in the normal way).


Re: holiday pay, you are entitled to be paid for accrued but unused holiday up to your termination date, but not for holiday that would have accrued during your notice period. If that seems unfair - consider that if you were working the notice period, your employer could always have insisted you take the holiday during that period.

dangermousesuper7

Thanks for that - I will check my contract, but in any case, I'll ask them to make the pension contributions and see what they say!