Redundancy + PILON

Finsdad

Hi,

I'm being made redundant for the first time as my company is closing our site and i am slightly confused by the redundancy calculation.

My T&C's state that I will receive one months salary for every year I have worked for them, capped at 15 years. Since I have worked 14 years then I thought that i would not need to be capped. However, they have added the PILON payment (12 weeks) to the redundancy payment which has pushed me over the limit!

In addition, the company policy states that if the max payment is reached, then the PILON will be deducted.

This leaves me around £2K worse off than my original 14 years redundancy. My question therefore is - should the PILON be added to the redundancy in this way? I would have thought these were separate entities. Thanks in advance

McKneff

Redundancy payment and PILON are calculated separately.


When I was made redundant I got 12 weeks redundancy because I worked there for 12 years.


And also 12 weeks PILON as a separate amont.


Speak to them to clarify the situation.

getmore4less

A company can put any terms it likes on an enhanced package.

They may have structured it in a way that makes it harder for them to enforce if they are reducing the PILON element.

I don't think they can legaly reduce the PILON part as this is compensation for a breach of contract or a contactual payment for the notice.

Typicaly you seperate the contractual payments and the redundancy

For statutory redundancy the service should be calculated using the later of termination date or the date you would have been terminated if you had worked statutory notice.

As you have 12weeks notice would this take you into another years service?

Finsdad

Hi guys,

Thanks for your replies. It's interesting that you both consider then the redundacy and PILON should be separate. Another interesting point I did not consider is that the my contract states that I should receive 12 weeks PILON plus 14 months redundancy pay yet the company policy contradicts this (i.e. if the two together exceeds the maximum, then one or the other is lessened)

Therefore it may be that the company policy is actually breaching the contracts.

We are meeting HR next week as part of the consultancy and so I will take these discussions in with me. My company is actually being quite understanding towards us and my co-workers so I'm sure that any discussions will be amicable.

Edit: getmore - no the 12 weeks redundancy doesn't take me into another years service