Redundancy: Pay in lieu of notice weekly wage calculation

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Redundancy and my employer pay me in lieu of notice. My Employment contract have a provision for Notice of Termination to be given by the Employer which is 1week for every year of service up to a maximum of 12 weeks.
They have to give me 12 weeks notice but instead of asking me to work the Notice, they pay me in lieu of notice(which I believe is called PILON)
The weekly wage used to calculate the PILON, they used the Basic salary (A) divided by 52 weeks = Weekly wage A.
This is then multiply with 12 weeks to give me PILON sum

The list below are in the Employment contract to be paid by the Employer (1)Employer Contribution pension sum, (2)Company's car purchase scheme £A/month, (3)Health care medical Insurance (BUPA), (4)Life assurance, (5)Permanent Health Insurance, (6) Discretionary performance related bonus, (7)Cost of Professional annual membership fees

Should they add the cost of the list above to the Basic salary(A) before dividing by 52 weeks to obtain the weekly wage?
Are there anything else that they should consider for the calculation of the weekly wage?
This matter since the weekly wage is also used to calculate the sum for the accrued but untaken annual leave entitlement.

i wish to know the correct way to calculate the weekly wage for this purpose.

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    PILON should compensate at the level you would have been paid had you worked the contract.


    The definition of a weeks pay which is used for the redundancy is in the employment act
    https://www.legislation.gov.uk/ukpga/1996/18/part/XIV/chapter/II

    you will need to research or get advice on any case law that clarifies what should be included.

    this has been done for holidays and as holiday pay is alo based on the "weeks pay" IMO much of that should carry over to redundancy.
  • Skanbuzz
    Skanbuzz Posts: 13 Forumite
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    In the employment contract, it has clause for Employer Notice for termination which in my case is 12 weeks but there is no clause for PILON. The employer already administer Pay in lieu of Notice. This is their doing . Is that a breach of contract? what is the redress or remedies? The company I worked for had been took over by another company back in May, all the old directors stepped down from the board and new directors came in. If the new employer change the name of the company in December officially and I was made redundant in November and that there had never been a consultation with me before that is it a breach of TUPE? what is the redress and remedies? could it be a constructive unfair dismissal?
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