Pay in lieu of notice

Cosmiczippy · 5 February 2015 at 6:59AM

Help please. After an extended period of sick leave, my contract of employment was terminated yesterday at an incapacity dismissal hearing. I am entitled to three months pay which I assume is in lieu of notice. However I was surprised to learn that this will not be paid in a lump sum, but over three months on the days I would normally be paid my salary at the end of February, March and April. My employer was NHS Lothian and both the manager who dismissed me and the HR rep accompanying her confirmed this and also that my dismissal was with immediate effect. Is this arrangement for PILON correct. I had been given to believe it would be paid as a lump sum.

ohreally · 5 February 2015 at 7:41AM

If you were a union member I can point you to an individual to raise this with.

Cosmiczippy · 5 February 2015 at 9:03AM

I am a member of Unison. During the whole promoting attendance and incapacity dismissal process they have been utterly useless and may as well have been sitting alongside management, in fact I wonder why I pay my subscription!

agrinnall · 5 February 2015 at 9:13AM

From a layman's perspective I would have thought that if your employment has now been terminated then any payments would also be due now (or at the latest in the next payroll run). To pay you over three months sounds more like being put on gardening leave, with your employment terminated at the end of your notice period.

getmore4less · 5 February 2015 at 10:02AM

If you have been terminated with immediate effect you will need your P45.

Cosmiczippy · 5 February 2015 at 10:42AM

Well that is what I thought too. My termination was definitely with immediate effect. I wondered what the legal position was with regard to PILON and whether in fact it must be paid as a lump sum in order for a P45 to be issued asap.

Another_not_new_user · 5 February 2015 at 11:21AM

Terminating your employement with immediate effect does not mean the same thing as "without notice". There is no legal right to PILON, even assuming PILON were involved or payable. There is no legal instruction that it must be paid in a lump sum. And there is no remedy to be had from an employer paying you what you are due when it is due, i.e on your nmormal payroll dates.

Why do you require a P45 asap?

Undervalued · 5 February 2015 at 1:00PM

Cosmiczippy wrote: »

I am a member of Unison. During the whole promoting attendance and incapacity dismissal process they have been utterly useless and may as well have been sitting alongside management, in fact I wonder why I pay my subscription!

My feelings about unions are, at best, lukewarm so I am not springing to their defence.

However, this could well be a situation where there is little they could usefully do.

By following due process it can be perfectly lawful for an employer to dismiss on incapacity grounds and it sounds as though that is what has happened here. Unless the employer has failed in some way that could give rise to an unfair dismissal claim, which would seem unlikely, then your entitlement is only the greater of contractual or statutory notice which is what they are paying.

On the face of it therefore it is hard to see what else the union could do.

As others have said, if they are going to pay the three months notice monthly as if you were still working then issue a P45 at the end, there is little you can do about that either.

Cosmiczippy · 6 February 2015 at 6:54AM

The benefits agency asked me for my P45.

Another_not_new_user · 6 February 2015 at 9:31AM

Cosmiczippy wrote: »

The benefits agency asked me for my P45.

So tell them that you won't have it until after your final payment is received.

Pay in lieu of notice

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