Redundancy minefield

Hi all.  I know this information will be 'out there' but it's just all so difficult to find.

There is a chance that I am going to be made redundant.  I've been on to the government's redundancy calculator and it's told me what I'm entitled to. I've been here for 15 years.  But on top of that, should I also get my notice period which is 3 months?  Obviously if I work those 3 months then I will get paid but can they say for me to leave with immediate effect and, if so, have to pay my notice period on top of the other money I would get?  I'm currently on furlough so I'm assuming they can't give me 3 months notice and keep me on furlough and use that money to pay my notice period?

Also, if they were to let me go immediately and pay my notice period up front, am I able to take up another job within that 3 months?

Hoping someone can help. Thanks for reading.


  • ratechaser
    ratechaser Posts: 1,674 Forumite
    First Anniversary First Post Name Dropper
    edited 27 November 2020 at 6:56PM
    Your redundancy pay (whether just the minimum statutory amount you've calculated, or any 'enhanced' amount that your employer may offer) is separate to your notice that you are entitled to be paid for whether you work through it or not (assuming you're not asking them to release you early?)

    If you are told you can leave immediately, it would be what's known as PILON - pay in lieu of notice, which will generally include any outstanding holiday entitlement, and is taxable). Unless you have any restrictive clauses in your employment contract, you should be ok to start another job straightway as your existing employment has been ended early. 

    PILON works for some people, especially as it frees you up if you have another job to go to. But conversely, if you have decent benefits like pension contributions, medical cover etc, you'll likely find that you wont get them within PILON, as it tends to be your base pay only. As an example, if I were to be made redundant tomorrow, I'd prefer to work my notice as I'd otherwise be losing out on close to £10k in benefits!
  • James_Noble_Bolton
    You should have a redundancy settlement value. And additionally you will get paid your normal wage for whatever your notice period should be. 
    This applies whether you have to work it out not. 


    James Noble
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