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Redundancy pay in lieu and jobseekers

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Redundancy pay in lieu and jobseekers

edited 30 November -1 at 1:00AM in Redundancy & Redundancy Planning
1 reply 1.5K views
meejuliemeejulie Forumite
5 posts
First Post
MoneySaving Newbie
edited 30 November -1 at 1:00AM in Redundancy & Redundancy Planning
My partner has just been made redundant because his company has gone into administration. He has been told he needs to apply for jobseekers and this will be deducted from his his 12 weeks statutory pay in lieu of notice, paid by the government. What happens if he gets a new job in that period. We know his redundancy ( he worked for the company for 20 years) is safe but we don't know about the pay in lieu. Can't seem to find anything online to confirm. Any help is welcome as he would like to go self employed.


  • PoundnotesPoundnotes Forumite
    6 posts
    First Post
    MoneySaving Newbie
    Hello and sorry to hear about your situation. I am currently going through the same process so I know it can be very difficult to get definitive information on this subject.

    As I understand it, you can claim redundancy, unpaid salary, holiday entitlement and notice period through the NIF (National Insurance Fund)

    The redundancy, holiday and any loss of salary is guaranteed and can't be effected by anything moving forward. If you win the lotto, you still get this money :)

    The notice is a bit different. For 20 years service your partner is entitled to 12 weeks payment in lieu of notice up to a maximum of £525 per week. If your partner earned less than this then he/she will receive their previous weekly amount over the 12 weeks. Basically you get your weekly amount but it's capped at £525.

    As far as I understand it, this amount is guaranteed. So if your partner finds a job after 4 weeks and earns £200 per week where they previously earned £600 per week, the NIF will pay £525 for the first 4 weeks (£525 is the capped rate) and £325 for the remaining weeks to top the £200 up to the cap.

    So you're guaranteed to get the same amount as before. If you find a job after 3 weeks and earn more then you get 3 weeks notice then nothing thereafter as you're earning more anyway.

    On this subject, the claim for notice pay will take into account any benefits you can claim whether you claim them or not.

    This is a long answer I know. If you need anything clarified please just ask but to make it easier can you state how much your partner was earning please
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