Post-Employment Notice Pay (PENP)

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nkhollings
nkhollings Posts: 5 Forumite
in Redundancy & redundancy planning
My organisation is going through a reorganisation and some people are at risk of redundancy. Can anyone advise on PENP? We are being told that, if we leave before the end of our statutory notice period, then we will have to pay tax and NI even though we are not paid. I work in the public sector and don't get PILON - when we stop work, the pay stops. Can anyone help?

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  • Comms69
    Comms69 Posts: 14,229 Forumite
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    nkhollings wrote: »
    My organisation is going through a reorganisation and some people are at risk of redundancy. Can anyone advise on PENP? We are being told that, if we leave before the end of our statutory notice period, then we will have to pay tax and NI even though we are not paid. I work in the public sector and don't get PILON - when we stop work, the pay stops. Can anyone help?



    You're clearly confused.


    You pay tax and ni on income. if you aren't paid, it's not owed.


    As for working in the public sector; PILON is available for that so no idea where you got that idea from.
  • nkhollings
    nkhollings Posts: 5 Forumite
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    Thanks. Maybe it's just my organisation that's not offering PILON, then.
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    nkhollings wrote: »
    Thanks. Maybe it's just my organisation that's not offering PILON, then.



    That's likely. Can you provide some more background on what is actually happening?
  • nkhollings
    nkhollings Posts: 5 Forumite
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    The organisation is down-sizing in 3 waves. The first wave has concluded. We are being given the option of "early release" at the end of the at risk period or working our full statutory notice. It is the early release people who are being told that, because of PENP regulations, they will have to pay tax and NI on money they don't receive.

    As I said, the organisation is not offering PILON. I agree with you that it is illogical but the organisation claim to have had legal advice which supports this view.
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    nkhollings wrote: »
    The organisation is down-sizing in 3 waves. The first wave has concluded. We are being given the option of "early release" at the end of the at risk period or working our full statutory notice. It is the early release people who are being told that, because of PENP regulations, they will have to pay tax and NI on money they don't receive.

    As I said, the organisation is not offering PILON. I agree with you that it is illogical but the organisation claim to have had legal advice which supports this view.


    That is incorrect.


    In anycase, is there a redundancy payment coming?
  • nkhollings
    nkhollings Posts: 5 Forumite
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    Yes, there will be a redundancy payment.
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    nkhollings wrote: »
    Yes, there will be a redundancy payment.



    So perhaps that's what they refer too?
  • nkhollings
    nkhollings Posts: 5 Forumite
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    No, they are definitely saying that people who leave before the end of their statutory notice will have to pay tax and NI on non-money.

    Thanks for being patient. It seemed illogical to us (employees) but the management were adamant so I thought this would be a good place to get an independent view.
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