payment in liew of notice

[mazzer487]

i have applied for voluntary redundancy expecting payment in liew of notice which would be 3 months pay.my hr have said the notice pay has been included in the package offered is this legal ?

[Eve]

Are they giving you a redundancy pay off as well?

How long have you worked there?

Are they asking you to sign a compromise agreement and, if so, have you got the appropriate independant legal advice?

[mazzer487]

i have worked there for 14 years and am receiving 48 weeks pay which i now know includes notice pay,i am unsure what a compromise agreement is what is it ?i thi j

[bimbo123456]

I assume this means they are not expecting you to work for your notice period. I would recommend you visit your local citizens advice (assuming you live in UK). I do feel for you. I hope you manage to find another job before the three months is up.

[Eve]

Some info on Compromise Agreements here...

http://www.armchairadvice.co.uk/leavingwork/co mpromise.asp

So you are getting about 12 weeks notice pay so about 36 weeks redundancy settlement, is that what you expected?

[mazzer487]

no,i thought i would get 48 weeks plus my 12 weeks pay

[themas]

The information you are given should separate the pay in leiu of notice (which, incidentally is compensation for breach of contract so does not attract tax or NI) from the redundancy element.

If you have got 36 weeks pay as redundancy you are well above the statutory minimum so the number of weeks (& whether you are getting full pay or the statutory limited amount) is a matter of contract with your employer. If it is a large employer they should have a policy on this & you should be able to get confirmation whether you have been treated in accordance with the policy.

[mazzer487]

thanks, it seems the union that were in talks with the company were under the impresion we were going to get pilon but when the announcement was made it stated we would receive 4 weeks pay for each year capped at 12 years inclusive of pilon.yje union challenged thisi but the company will not budge.

[doirecormac]

@ themas, is it correct that PILON is free from tax and NI? It's something I'm interested in - cheers

[themas]

mazzer - the cap at 12 years is because under statute they have to give 1 weeks notice for each complete year's service, up to 12 years. The way they have done it is odd but - as I said before - the redundancy element is well above the statutory minimum so I don't think there is anything you can do about it. (If someone had worked for them for a very long time - say 30 years - then what they have done just might breach the redundancy stat. min. rules, but unlikely to.) But do make sure they payment is tax & NI free, at least up to �30K.

doirecormac - if it is pilon - in other words your employment ends without you being given the proper notice - then yes it is tax & NI free. There might be an upper limit - I am not sure about that - but if there is I think it is quite high. The situation is different if you are on "gardening leave" because then you are still employed until the leave ends, so pay during that period is normal pay & taxable etc. The crucial issue is what is the end date of employment - which should be on the P45.

[mazzer487]

i have now received my compromise agreement but the breakdowm of payment states statutory redundancy pay/ex gracia payment nothing about payment in liew of notice.i am to sign this on monday with a solicitor present should there not be pilon in this agreement ?