Partial Redundancy and Notice Period

TheBaldwins

Hi, my full-time role is being made redundant, but my employer has offered me a different role with part-time hours (0.6 FTE). They are paying me a partial redundancy of the 0.4 FTE hours that I will lose. I have a 3 month notice period, but will be expected to start my new part-time role 3 weeks after being notified of my full-time role being redundant. Two questions:

1. Shouldn't I be compensated for my three months notice in addition to the redundancy?
2. They can't find my contract, so they do not know if there was a PILON (Pay in Lieu of Notice) clause in my contract. So, if the answer to (1) is yes, I assume they will need to make the notice payment part of my redundancy payment, in which case it should be tax free (as it is under £30k)?

Thanks for any advice and help.


J

Cheeky_Monkey

What does it say in your copy of your Contract?

getmore4less

If you are taking another job you are not redundant.

They can pay compensation but it is not redundancy.

if they protect your salary for the notice period or longer it will be taxable.

TheBaldwins

Thank you both for replying.

I have just found my contract - I had to dig around in the loft. It has a PILON clause in it, so that answers that question.

However, getmore4less, what you say makes sense, but my letter says they are giving me '...formal notice that [my] current role is redundant and will cease on 31 March...' and they are offering me the new role'...with effect from 1 April'. It goes on to say they have calculated a 'redundancy payment based on the difference between old and new salary because [my] previous role no longer exists'. I suppose they are not terminating my contract, due to the new part time role, so the PILON clause probably doesn't come into play. However, I am losing 2 months worth of full time salary, which doesn't seem right either. I guess I will need to see what they say and then follow up.

getmore4less

the law on this (in my view is clear it cannot be a redundancy payment.)

http://www.legislation.gov.uk/ukpga/1996/18/section/141


You could insist on full notice for the termination of the old job and a PILON payment to cover the loss.

Or tell them you don't want the part time job and get full redundancy assuming they don't try 141(3b)

agrinnall

I'd agree with getmore4less that this really can't be a redundancy payment. I guess they can give you the money anyway but if HMRC don't agree that is is redundancy you would be required to pay the appropriate level of tax and NI on the full amount (basically treating it in the same way as a bonus payment).