Redundancy while on furlough - PILON query

Aweeze973

I've been furloughed for nearly 3 months now and have been told I am now to be made redundant (Stand-alone role so a fairly quick consultation process likely over in a week). I have been with the co for 10 years and so I am entitled to 10 weeks pay in lieu of notice, which they have confirmed will be paid at 100%. I was initially thinking, why dont they keep me furloughed for another couple of months at minimal cost to the business (paying 80% the same as they're claiming) and then make me redundant and pay me the 10 weeks PILON if work still hasn't picked up. But now I'm wondering whether, if I push it, I risk them just keeping me on furlough for my 10 weeks notice and then I'd only get 80% - I wondered if anyone else thought this was a risk? By the way, I did mention this in my initial consultation meeting yesterday and my Boss said he was doing it now because they can claim part of the redundancy pay back through the furlough scheme, which they cant later this year - Does he mean they can claim back 80% of the PILON payment? Thanks

General_Grant

Aweeze973 said:

I've been furloughed for nearly 3 months now and have been told I am now to be made redundant (Stand-alone role so a fairly quick consultation process likely over in a week). I have been with the co for 10 years and so I am entitled to 10 weeks pay in lieu of notice, which they have confirmed will be paid at 100%. I was initially thinking, why dont they keep me furloughed for another couple of months at minimal cost to the business (paying 80% the same as they're claiming) and then make me redundant and pay me the 10 weeks PILON if work still hasn't picked up. But now I'm wondering whether, if I push it, I risk them just keeping me on furlough for my 10 weeks notice and then I'd only get 80% - I wondered if anyone else thought this was a risk? By the way, I did mention this in my initial consultation meeting yesterday and my Boss said he was doing it now because they can claim part of the redundancy pay back through the furlough scheme, which they cant later this year - Does he mean they can claim back 80% of the PILON payment? Thanks

PILON is Pay In Lieu of Notice.  Are they not giving you your ten weeks' notice?
I would expect them to do that and they will indeed be able to claim the 80% from the Job Retention Scheme (even though you are on notice to lose your job).  If things pick up within that 10-week period, they could cancel the redundancy.
The redundancy payment should be in addition to the notice pay.

Aweeze973

General_Grant said:

Aweeze973 said:

I've been furloughed for nearly 3 months now and have been told I am now to be made redundant (Stand-alone role so a fairly quick consultation process likely over in a week). I have been with the co for 10 years and so I am entitled to 10 weeks pay in lieu of notice, which they have confirmed will be paid at 100%. I was initially thinking, why dont they keep me furloughed for another couple of months at minimal cost to the business (paying 80% the same as they're claiming) and then make me redundant and pay me the 10 weeks PILON if work still hasn't picked up. But now I'm wondering whether, if I push it, I risk them just keeping me on furlough for my 10 weeks notice and then I'd only get 80% - I wondered if anyone else thought this was a risk? By the way, I did mention this in my initial consultation meeting yesterday and my Boss said he was doing it now because they can claim part of the redundancy pay back through the furlough scheme, which they cant later this year - Does he mean they can claim back 80% of the PILON payment? Thanks

PILON is Pay In Lieu of Notice.  Are they not giving you your ten weeks' notice?
I would expect them to do that and they will indeed be able to claim the 80% from the Job Retention Scheme (even though you are on notice to lose your job).  If things pick up within that 10-week period, they could cancel the redundancy.
The redundancy payment should be in addition to the notice pay.

Thanks for this. Yes the final figure includes 10 weeks PILON, accrued holiday (both at 100%) and my stat red pay. So their calculations are correct and fair - It will be 5 days start to finish between at risk notification and redundancy confirmation (likely to be at the 2nd consultation video call this friday and there's no bumping/alternative roles), so I expect come friday, I will be made redundant. Friends & family have questioned why they dont keep me furloughed on 80% pay for another month and make me redundant and PILON w/effect from say end of July, therefore giving me an extra months pay. I'm just trying to max the amount of income basically. Hope this makes sense

sharpe106

As it would cost them more to keep you on furlough. It is not what the scheme is for either, the chancellor has even said that HMRC will being looking at claims, you may have noticed a few large companies lately state they are going to pay the furlough money back.

happyflyer_2

I have a consultation about being made redundant meeting tomorrow and think I will be made redundant and I’m on Universal Credit and would like to know what will happen to my Universal Credit payments ? 

sharpe106

UC is based on circumstances so they should recalculate it.