PILON/working notice! holiday Pay?

Brussel_Sprout

I got made redundant for the first time on Friday I have only been there 18months, and am on a 3 month notice period.

Firstly I have been offered a severence pay as I'm not eligible for redundancy pay, not questioning this that's fine. But this is new ground for me and I have a few questions - I'll be speaking to HR tomorrow but they can be a bit wooly!

1. If I work for 1 or 2 weeks of my notice, will I get paid for that in addition to PILON or will that be deducted from the figure they have given me?

2. If I agree to the PILON but do work a few days as a I can't just leave, am I entitled to keep my car for 3 months (this is my notice period)?

3. If I agree to the PILON and get paid this as a lump sum, will I be taxed a larger amount than if I was to receive it in 3 payments as my salary would have been? Could I request they paid me it in 3 monthly amounts the same as my salary would have been?

4. I have been offered garden leave but if I find employment before the 3 months are up I'd like to have the freedom to start.

5. Our holiday year started on the 1st April, I carried over 1.5 days from last year and have 25 days per year. I have taken 0.5 days since April. I would have accrued 4 days if I leave on the 30th May which is what has been suggested. Am I entitled to be paid for that holiday and also the 1.5days that I carried over?

Any help or advice would be greatly received, feeling a bit 'lost' as I've never been out of work before!

Thanks

anamenottaken

Brussel_Sprout wrote: »

I got made redundant for the first time on Friday I have only been there 18months, and am on a 3 month notice period.

Firstly I have been offered a severence pay as I'm not eligible for redundancy pay, not questioning this that's fine. But this is new ground for me and I have a few questions - I'll be speaking to HR tomorrow but they can be a bit wooly!

1. If I work for 1 or 2 weeks of my notice, will I get paid for that in addition to PILON or will that be deducted from the figure they have given me? If you work part of your notice period, you should be paid for it but not "in lieu of notice". PILON would be in respect of any of the notice period you did not work.

2. If I agree to the PILON but do work a few days as a I can't just leave, am I entitled to keep my car for 3 months (this is my notice period)? If you are not employed, then you aren't entitled to elements of your benefits package. But this could be looked on as part of the financial compensation covered by PILON.

3. If I agree to the PILON and get paid this as a lump sum, will I be taxed a larger amount than if I was to receive it in 3 payments as my salary would have been? Could I request they paid me it in 3 monthly amounts the same as my salary would have been? As the three months are all in the same tax year, it will make no difference to the eventual amount of tax you pay. However it depends on how quickly you find alternative employment as to when that is straightened out. Is PILON an option covered by your terms of employment? If not, is it nevertheless customary for your employers to pay PILON? This can affect the tax status of payments.

4. I have been offered garden leave but if I find employment before the 3 months are up I'd like to have the freedom to start. So garden leave would be an alternative to PILON. If you are on garden leave, you are still employed (so you should still have the car). Is a three-month notice period common for the type of work you do? If it is, your next employer may be content to wait - and you might still be available sooner than other candidates who would have to give longer notice. If you were offered other work, you could ask your present employer to release you - and presumably not be paid by them.

5. Our holiday year started on the 1st April, I carried over 1.5 days from last year and have 25 days per year. I have taken 0.5 days since April. I would have accrued 4 days if I leave on the 30th May which is what has been suggested. Am I entitled to be paid for that holiday and also the 1.5days that I carried over? Do you not work 5 days a week? If you do work 5 days a week then you would be entitled to more holiday. Are you entitled to 8 bank holidays too? You are entitled to be paid for holiday accrued but not taken by the time of your termination.

Any help or advice would be greatly received, feeling a bit 'lost' as I've never been out of work before!

Thanks

........................

Brussel_Sprout

Thanks for coming back so quick!

1. So if I work until the end of this week, I'll get paid normally then they will take that money from the PILON payment?

2. Thanks, they've already mentioned that it could be negotiated for me to keep the car for a certain period.

3. PILON is an option within my contract yes, it states that normal deductions will be paid through payroll.

4. Yes 3 months is typical of my role. It states in my contract they they can still call upon me and ask me to work even if I go off on garden leave - I'm feeling a bit bitter and I'm thinking if I'm going to get my salary paid for 3 months regardless what's the point of being at their call other than me being 'employed' on my cv?

5. Yes in total including bank holidays a I get 33 days a year, carried over 1.5 so this year I had 34.5 days, and I've used 0.5 days.
So basically if I say I want to finish, terminate my employment on Friday it's: 34.5/12 = 2.875 x 1.75 (1 month and 3 wks) = 5 days - 0.5 taken = 4.5days? They probably won't give me this as they've offered severence but no harm in asking!

Thanks for your help, feeling a bit more confident in talking to them tomorrow, hard to keep the emotions in check!

getmore4less

You can negotiate the package.

There are no hard rules on how they do this as long as they pay the minimum broadly as already covered

The company that made me redundant, paid the full notice as PILON even though we worked for some time to do handovers etc.

See what is on offer, I would try for full notice as PILON after finishing work, try to keep the benefits or get paid for them, this may require garden leave to meet the requirement of being employee(eg company car insurance).

One advantage of PILON and termination is you may qualify for contributions JSA for 6months while looking for work.

If paid PILON then you don't accrue holiday for the notice garden leave you do.

you get the 1.5 carry over then work out this years prorate and take the 0.5 day off that.

Do the prorate in weeks not months roughly 33 * 8/52 5.08 days

Brussel_Sprout

Excellent thanks for your help.

I think Im going to offer to work this week then take the PILON. Ask to keep my car, and ask for the holiday pay too. Ive worked out with Easter taken off and the carry over days I should get paid for 4 days.

I was told not to go in today and everyone keeps messaging me their condolences, they don't seem to think I'll be back in.

Do i have any rights to ask for my laptop as I just want to get some of my personal files off there? They shouldn't be on there but i travel a lot so sometimes needs must!

getmore4less

In these cases you need to ask for the access or if not too personal ask if someone can get them for you.

It can be hard not to get annoyed/angry but I am a great believer in not burning bridges and being cooperative with any handover etc.

People move on and remember.

Over the years many people I have worked with are now in positions to make offers of employment or influence the process working or a wide range of companies it's a small world and what goes around......

Brussel_Sprout

Oh I totally believe that too, it is hard not to get emotional when youve put some much into a job for it to be whipped out from underneath you but i realise that business is business and its just unfortunate its me!

There were a few others aswell so thats something, at least it wasnt just me!

LittleVoice

Brussel_Sprout wrote: »

. . .

5. Yes in total including bank holidays a I get 33 days a year, carried over 1.5 so this year I had 34.5 days, and I've used 0.5 days.

You say you have taken only 0.5 days since 1 April. Did you not have extra time off at Easter and for the May Day bank holiday? All days need to be taken off the finally accrued entitlement.

getmore4less

Network and keep in touch with the others.

It is not unknown for companies to be looking for multiple people and being in a position to recommend others even if different skills can be useful.

in interviews when talking about the future often you get we are looking to grow X, being able to say I know a couple of good people with skills that migh be of interest.

A lot of places use referral bonus to by pass agency costs so knowing people looking for work is always handy

Brussel_Sprout

Hi Little Voice,

Yes id forgotten about the 2 days off at Easter and May Bank holiday.

It works out that i will of accrued 5.08 by the end of this week, plus the 1.5 carry over = 6.5 days

I've taken 3.5 so should be eligible for holiday payment of 3 days - have i got that right?!

Thanks,

trukdiver

getmore4less wrote: »

If paid PILON then you don't accrue holiday for the notice garden leave you do.

Are you sure? When I was made redundant, I took 3 months garden leave. It was deemed that I had taken my holidays during the garden leave period, so I also lost all the unused holidays from the rest of the year...