Payment in lieu of notice / length of service
Payment in lieu of notice / length of service
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P-Jay

Original Poster:

11,401 posts

220 months

Thursday 28th February 2013
quotequote all
Got laid off on Friday, boo-hiss, total pain in the arse but never mind.

As part of my 'package' I was told that the directors had taken the option to pay me a months salary in lieu of notice, wasn't given the option just told. (we'll gloss over the c£3000 they robbed me in non-paid commissions).

I worked there, for a few days short of 3 years, 6 working days short in fact.

Because I couldn't work my notice period my redundancy payment has been calculated on 2 full years service, not 3. I'm under no illusions, this wasn't an unhappy coincidence.

Is this fair? More importantly is it legal?

If not, what's my options in regards to getting it - asking nicely won't make a blind bit of difference, there was quite a breakdown and we didn't so much burns bridges between us as:


Countdown

49,267 posts

225 months

Thursday 28th February 2013
quotequote all
P-Jay said:
As part of my 'package' I was told that the directors had taken the option to pay me a months salary in lieu of notice, wasn't given the option just told.
Bad luck about the redundancy frown

With regards to PILON it's fairly straightforward. If your contractual notice period is one month then that's all you're entitled to. They can either ask you to work your notice period (and get paid for it) or they can pay you one month's PILON and ask (well, tell) you not to come back in to work.

That's my understanding. However Breadvan72 seems to be the expert in this area so hopefully he will be along to advise. smile

ps Good luck finding a new job thumbup.

edc

9,620 posts

280 months

Thursday 28th February 2013
quotequote all
Is there a clause that expressly permits pay in lieu of notice within your T&Cs?

P-Jay

Original Poster:

11,401 posts

220 months

Thursday 28th February 2013
quotequote all
edc said:
Is there a clause that expressly permits pay in lieu of notice within your T&Cs?
Yes, there were a few possible options,

1) Work notice, get paid for it, and leave.
2) Be placed on gardening leave
3) I forget the name, but basically sent home on statutory pay until they need you again
4) PILON

All at there disgression.

I'll be frank, PILON was the option I would have taken given the choice, but it seems unfair to me they're able to use it to cut my length of service a few days short of the end of my 3rd year.

I thought about bringing it up during the process, but frankly my fixed costs of employment (childcare, commuting) were more than the weeks basic salary, but now I've gone and been paid off I'm prepared to fight it, I don't have a moral issue with it, they went to great lengths to screw me.

andy-xr

13,204 posts

233 months

Thursday 28th February 2013
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Sounds like you're mixing up what might be salary calculations from redundancy rather than pay in lieu of notice. I'm not sure though, I'm just a sales guy

The Working TIme Regs say

is not less than one week’s notice for each year of continuous employment if his period of continuous employment is two years or more but less than twelve years

So it wouldnt necessarily matter, other than whats in your contract is over the minimum, if they give you 1 months notice.

Personally I'd be more interested in the ex gratia payment options and whether there's a compromise agreement or not. Make sure you get your holidays paid out as well if you're owed any

Countdown

49,267 posts

225 months

Thursday 28th February 2013
quotequote all
Correct me if m wrong but it sounds like you've got 1 months pay without having to do any work for it. You COULD work the extra month which would mean you get an extra weeks redundancy pay.

So for an extra months work you'd get an extra weeks pay?

anonymous-user

83 months

Saturday 2nd March 2013
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OP, do you wish to challenge the fairness of the redundancy? What consultation and procedure preceded the termination?