Redundancy / PILON / Official Leaving Date

Wellgood

Hi there,


Any advice would be really appreciated.


I am currently a Civil Servant and am unfortunately about to be made redundant after almost 12 years service (started October 2002)


I have been offered PILON and have a provisional departure date (ie walk out the office and not come back date..) as of 31st July 2014. I will however in July's pay I will apparently be paid my 3 months notice, ie a lump sum as PILON, paid to cover the period afterwards, ending 31st October 2014.


I have a few questions I just can't seem to get answers to from our local HR:


1) As far as Contribution JSA application goes ie to claim £72.40 for 26 weeks, can I apply 1st August 2014? Or do I need to wait until 1st November 2014 after the PILON has elapsed?


2) As far as my 'length of service' goes, will they calculate it as being from October 2002 to July 2014 (ie start of PILON).....or October 2002 to October 2014 (end of PILON)?


3) In relation to the 3 months PILON - what happens to pension contributions? I currently pay 6.48%/month. Also I buy £243 a month childcare vouchers.....am presuming pension and CCV will not be paid/contributed to for the months of Aug, Sept & Oct during PILON?


Apologies if these questions have quite straight forward answers.


Just feeling a tad lost at the moment with everything therefore any clarification would be greatly appreciated.

anamenottaken

Wellgood wrote: »

Hi there,


Any advice would be really appreciated.


I am currently a Civil Servant and am unfortunately about to be made redundant after almost 12 years service (started October 2002)


I have been offered PILON and have a provisional departure date (ie walk out the office and not come back date..) as of 31st July 2014. I will however in July's pay I will apparently be paid my 3 months notice, ie a lump sum as PILON, paid to cover the period afterwards, ending 31st October 2014. They should be able to confirm a leaving date well ahead of 31 July (subject of course to their not having found another position for you in the meantime). Or is the 31 July date on that basis any way? If you are due 3 months notice, that period will not run from 1 August but from whatever date you receive your notice. PILON is "in lieu" of notice and not an add on after you have received shorter notice than that to which you are entitled. If the Civil Service are systematically paying more, they are wasting public money.


I have a few questions I just can't seem to get answers to from our local HR:


1) As far as Contribution JSA application goes ie to claim £72.40 for 26 weeks, can I apply 1st August 2014? Or do I need to wait until 1st November 2014 after the PILON has elapsed? The Rules changed some years back and you can now claim immediately.


2) As far as my 'length of service' goes, will they calculate it as being from October 2002 to July 2014 (ie start of PILON).....or October 2002 to October 2014 (end of PILON)? As your employment will terminate in July, it is the July date for your length of service.

3) In relation to the 3 months PILON - what happens to pension contributions? I currently pay 6.48%/month. Also I buy £243 a month childcare vouchers.....am presuming pension and CCV will not be paid/contributed to for the months of Aug, Sept & Oct during PILON? You need to get an answer out of HR/Payroll on that. You can't be the first and only one in this kind of situation. Are you a TU member?

Apologies if these questions have quite straight forward answers.


Just feeling a tad lost at the moment with everything therefore any clarification would be greatly appreciated.

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

getmore4less

for 2 it is not as above when there is PILON the following is wrong. As your employment will terminate in July, it is the July date for your length of service.


The length of service for the calculation of redundacy can get a bit complicated.

If you work notice/garden leave then it is the termination date

If you are paid PILON and terminated early then it can be a later date depending on the statutory notice(not the contractual notice if longer).

With the dates we are dealing with we can safely assume for now that the statutory notice is 11 weeks.

If they decide to treat the notice and termination date as thurs 31st July(quite common) then the relevent date for service for redundacy is 16th of Oct(inclusive) so does that make you up to 12 years?

If they decide to count the date of notice as an earlier date and avoid the extra year but are still going to give you 3 months PILON then you can ask for notice worked to be counted and that part of the PILON to be paid gross(if the redunancy is allready over £30k it makes little differece just saves a bit of NI).

pandakins99

Last year I received 3 months PILON and accrued holiday pay, which was paid 1 month after I left through redundancy and after my P45 was issued.


I got a shock when I got the payment, as it had been taxed using a 0T M1 tax code, which apparently has to be used if PILON is paid after the P45 has been issued.


I eventually got £3000 back in tax but only after about 9 months of dealing with HMRC.


This was never mentioned to me during the redundancy consultation and is worth bearing in mind

st3v376

pandakins99
I would be interested to know how you approached the reclaiming of the tax paid. I was made redundant in October, worked 1 month out of 3 and was paid in lieu for the remaining 2 months.
There was no PILON clause in my contract so the payment was outside the contract and the employer was in breach.

I would like to attempt to recoup the tax paid, but would like to find out the best way to achieve success, I understand HMRC are quite keen on treating such payments taxable, outside the 30k tax free amount.

apologies for hijacking thread. Unfortunately I can't help much with the OP's questions.