Pay in lieu of notice

rocketqueen · 10 January 2019 at 6:46PM

Just found out I’m going to be made redundant in 4 weeks time, had consultation today and they mentioned they are going to inform me of the redundancy payment at a later date.

Employer has also said they will give us all 1 months pay in lieu of notice, but I have just seen on the Gov.uk website that they are meant to pay 1 weeks notice for each year of employment - I have been there 11 years.

My employment contract says that employment can be terminated by 1 months notice so does this mean that they do not have to pay the notice pay mentioned above?

Sorry if this doesn’t make sense, I’m finding it all very stressful and confusing!

Masomnia · 10 January 2019 at 7:19PM

Yep, 11 weeks.

TadleyBaggie · 10 January 2019 at 10:16PM

You are entitled (statutory) to 1 weeks payment for every year you have worked there, so 11 weeks. On top of this you will receive 1 months PILON. So you will leave immediately and not have to work a notice period.

It could be that the redundancy payment terms is better than statutory, that's up to the company. I was made redundant twice and both times I was paid 1 month for every year I worked there. The second time I also got 3 months PILON as well.

headpin · 10 January 2019 at 10:18PM

They need to give you 11 weeks or pay in lieu thereof, but you only need to have given them one months notice.

How many people are affected and how many employees does your company have? This affects what your company should be doing. If over 20 (from memory) are affected then there should be a minimum 90 day(again from memory) consultation process. And, if you hve only found out today how did they select those to be made redundant, assuming that the company has not just ceased trading? There needed to be a process that is fair and equitable and/or specific criteria on making people redundant need to be met.

You need to consult your union or trade representative or otherwise speak to Citizens Advice or similar to get your rights and entitlements explained to you.

getmore4less · 10 January 2019 at 11:18PM

TadleyBaggie wrote: »

You are entitled (statutory) to 1 weeks payment for every year you have worked there, so 11 weeks. On top of this you will receive 1 months PILON. So you will leave immediately and not have to work a notice period.

It could be that the redundancy payment terms is better than statutory, that's up to the company. I was made redundant twice and both times I was paid 1 month for every year I worked there. The second time I also got 3 months PILON as well.

You don't double dip, the statutory would replace the wrong contractual notice.

rocketqueen · 11 January 2019 at 7:30PM

Thank you all 😀

Headpin- everyone at one particular site is affected, we are all being made redundant and the site will be closed. The company have other sites but nothing remotely close by for relocation purposes. Approx 45 staff being made redundant.

I did wonder about the 90 day thing, but as we are all being made redundant I wasn’t sure if it applied (as we have all been treated the same and no selection for redundancy has taken place.)

I will go to the citizens advice and ask them I think, as I am completely lost with all this.

getmore4less · 11 January 2019 at 7:42PM

Statutory consultation will be 30 days.

kazmeister · 12 January 2019 at 11:36PM

You should enter a consultation period, at the endo f which you should be given formal notification of your redundancy.

You will be entitled to redundancy pay as here https://worksmart.org.uk/work-rights/losing-your-job/redundancy/i-have-been-made-redundant-what-payment-am-i-entitled

and should either work your notice or be paid in lieu of notice (PILON) as here https://worksmart.org.uk/work-rights/losing-your-job/redundancy/does-my-employer-have-pay-wages-full-during-my-notice-period

Links from Worksmart part of the TUC

Just_Passing_Bi · 24 January 2019 at 3:46PM

Thread very similiar to our current position.

If an employee (41+) has been with a company 15 years, do they get 15 years redundacy pay = 1.5 weeks pay for every years service, or is it capped at 12 weeks?

COE is 4 weeks, employee has now been given notice, although the employer has requested the employee remains working for the company until final day i.e , in 4 weeks time, therefore, will there be any PILON?

Also, the company will only pay whats's statutory

:(

General_Grant · 24 January 2019 at 4:04PM

Just_Passing_Bi wrote: »

Thread very similiar to our current position.

If an employee (41+) has been with a company 15 years, do they get 15 years redundacy pay = 1.5 weeks pay for every years service, or is it capped at 12 weeks?

COE is 4 weeks, employee has now been given notice, although the employer has requested the employee remains working for the company until final day i.e , in 4 weeks time, therefore, will there be any PILON?

Also, the company will only pay whats's statutory :(

If they have been an employee for more than 12 years then their statutory notice period is capped at 12 weeks. If they are required to work for only 4 weeks of that notice period, then they are due to be paid for the additional 8 weeks.

Just_Passing_Bi · 24 January 2019 at 4:47PM

Thanks,

General_Grant wrote: »

If they are required to work for only 4 weeks of that notice period, then they are due to be paid for the additional 8 weeks.

Ah, as as the contact is 4 weeks notice period either side, I was assuming they only had to pay 4 weeks notice (which is the period required to work)

If I've understood correctly, 12 weeks redundacy pay + 8 weeks PILON

Pay in lieu of notice

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