Date for calculation of redundancy payment
LittleVoice
Posts: 8,974 Forumite
Am I correct in thinking that, if an employer issues a notice of redundancy, the redundancy payment insofar as it considers length of service relates to the point at which statutory notice would expire rather than contractual notice expiry?
For example if notice is issued on 1 June and the statutory notice is one week (because the employee would not complete two years' service until 20 June) but is for a contractual one-month period, is statutory redundancy pay calculated on service on 8 June (when statutory notice would have expired) - and therefore the employee is not entitled to redundancy payment - or is it based on 1 July (contractual notice period end) - and therefore redundancy pay is due?
If it is calculated on statutory notice date, can you point me to the legislation?
Thanks.
For example if notice is issued on 1 June and the statutory notice is one week (because the employee would not complete two years' service until 20 June) but is for a contractual one-month period, is statutory redundancy pay calculated on service on 8 June (when statutory notice would have expired) - and therefore the employee is not entitled to redundancy payment - or is it based on 1 July (contractual notice period end) - and therefore redundancy pay is due?
If it is calculated on statutory notice date, can you point me to the legislation?
Thanks.
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Comments
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When are they getting terminated?
if they are working the notice(or garden leave) it is the termination date.
If they are terminated without full contractual notice then if the termination date would be before the statutory notice would have run out you use the later date using full statutory notice.0 -
Thanks for that - I couldn't remember the relationship.
The situation I have in mind is where contractual notice is one month but the employer issued a contract which also allowed them to pay in lieu of notice (so basically with immediate effect if they wish).
So if they did PILON they would only have to pay redundancy pay as well if the two year anniversary occurred within a week after the termination date and not if it were just the contractual notice period which would have taken them there.0 -
Why bother with dismissal by reason of redundancy and open up extra risks of a court case.0
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getmore4less wrote: »Why bother with dismissal by reason of redundancy and open up extra risks of a court case.
That is a good question! I am not the one advising the employer - that's a solicitor.
Because the redundancy of someone with less than two years' service may be linked to someone who has just received three months notice, the actual notice given may be longer than their contractual notice, which would definitely take them past the two-year point.0
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