39 week contract, redundancy, service anniversary coming up

Jackiesparrow

I am in consultation regarding redundancy. Its a done deal. I am contracted to 39 weeks work at 28hrs per week, this is paid over 12 months but it states in contract that 13 weeks are 'unpaid leave'. My question is do they divide my annual income by 39 to get my weekly wage? They seem to think it should be divided by 52, as they pay me every month. Surely the 'unpaid leave' is relevant? 
Also, I will hit a service anniversary during what will be the notice period, literally 5 weeks into the 12 weeks notice. This would gain me another 3 weeks wages on the redundancy pay. Can I request garden leave in order to hit this or do I HAVE to take pilon? 

Thanks for any advice  

General_Grant

Jackiesparrow said:

I am in consultation regarding redundancy. Its a done deal. I am contracted to 39 weeks work at 28hrs per week, this is paid over 12 months but it states in contract that 13 weeks are 'unpaid leave'. My question is do they divide my annual income by 39 to get my weekly wage? They seem to think it should be divided by 52, as they pay me every month. Surely the 'unpaid leave' is relevant? 
Also, I will hit a service anniversary during what will be the notice period, literally 5 weeks into the 12 weeks notice. This would gain me another 3 weeks wages on the redundancy pay. Can I request garden leave in order to hit this or do I HAVE to take pilon? 

Thanks for any advice  

Partial response:

39 weeks (work) plus 13 weeks (unpaid leave) totals 52 weeks.
So when do you get paid leave?

What is your annual salary (12 x monthly gross amount)?

The 12-week notice period: is this simply contractual (and not statutory) or have you already worked there for more than 12 years?

jcrennie

These '9 month contracts' (as I suspect it is) are a minefield at the best of times. Do you have a union rep? I'd speak to them if so as they may have some experience. From my personal view point, your employer is right to divide by 52 weeks as you are paid the salary across 12 months. This is standard practice and is in line with employment standards and businesses so this is fair.

If you hit a service anniversary date during your notice, tell them this. If they PILON then this should be factored in to the payment. If you mention it during the consultation period then they should pay it no problems regardless of whether you go on garden leave or just get the lump sum.

General_Grant

jcrennie said:

These '9 month contracts' (as I suspect it is) are a minefield at the best of times. Do you have a union rep? I'd speak to them if so as they may have some experience. From my personal view point, your employer is right to divide by 52 weeks as you are paid the salary across 12 months. This is standard practice and is in line with employment standards and businesses so this is fair.

If you hit a service anniversary date during your notice, tell them this. If they PILON then this should be factored in to the payment. If you mention it during the consultation period then they should pay it no problems regardless of whether you go on garden leave or just get the lump sum.

I think you may be over-optimistic.  If PILON is paid then the service anniversary is not reached.
The option for the employer to choose to pay PILON may also be contractual.

Jackiesparrow

Thanks all. I've found some case documentation that points to them having to  calculate using 39 weeks. I am paid £9700, contracted to 39 weeks 28 hours per week, which includes the paid hols (so I actually work 34.5 weeks, rest is the paid hol) My contract states that it is classed as 'unpaid leave' for the rest of the year and that my earnings will be split over the 12 months. Its a large company thats doing incdredibly well during the pandemic. I will hit 15 years service 5 weeks into notice, so am hoping they will honour this. BTW there is no mention of pilon in my contract except under dismissal for gross misconduct

Jackiesparrow

I dont think its fair to do it over 52 weeks. They are only paying me what I have earned. I get paid 21hrs a week to 'save' the other to have in periods where I am not required to work. Seems unfair to me  

getmore4less

If you have 15 years service then you can add a minimum of 12 weeks to the date you are put on notice for the relevant date for redundancy even if they terminate early with PILON. 

A weeks pay is defined in the employment act you can work through that to check how it should be calculated.

As the pay is spread over 52 weeks chack if they need to adjust for the distribution of actual work. 

Jackiesparrow

Thanks all for the replies. Have my final consultation tomorrow, having received the figures they are expecing to pay me. My question now is: 
Do I accrue holidays under PILON? There is NO pilon clause in my contract.
In 3 weeks I hit my 15 year anniversary. They have agreed that they have to count 15 years when working out my redundancy. If i was still working (not on pilon) I would get an extra weeks holidays as a service award. In my opeinion they should honour this, but what it the legal position does anyone know? 
Thanks in advance  

getmore4less

Under PILON it is always possible to have an employee take any holiday they accrue so no loss.

With 12weeks PILON even if they did include the extra week for service they could fit that week in so again no loss.

You could try asking for it if they are  working out acrued unused holiday beyond the termination date(some companied do some don't) 

Many accruals for service kick in on the next holiday year not immediately so look at the full terms. 

DOn't forget if you have a birthday in the statutory notice period that also ticks up redundancy buy 1/2 week if  >=42