WHen should employers pay redundancy after dismissal?
WHen should employers pay redundancy after dismissal?
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Discussion

Purple845

Original Poster:

31 posts

103 months

Saturday 5th May 2018
quotequote all
I was made redundant last month, and I was told I would receive statutory redundancy and 4 weeks pay in lieu of notice.

I have still not received this, but received my p45. This did not include my pay in lieu of notice as it has not been paid, but I’m told the PILON is taxable so not sure how that works p45 wise.

I’m now getting concerned. I started a new job 2 weeks after I was made redundant, and my old job knows this as they were asked for references. Can they withhold the PILON as I started a job within 4 weeks? My p45 lists my last date of employment as the day they told me I was made redundant.

I’m thinking about getting ACAS involved as the HR department are being vague.

Gargamel

16,342 posts

290 months

Saturday 5th May 2018
quotequote all
Purple845 said:
I was made redundant last month, and I was told I would receive statutory redundancy and 4 weeks pay in lieu of notice.

I have still not received this, but received my p45. This did not include my pay in lieu of notice as it has not been paid, but I’m told the PILON is taxable so not sure how that works p45 wise.

I’m now getting concerned. I started a new job 2 weeks after I was made redundant, and my old job knows this as they were asked for references. Can they withhold the PILON as I started a job within 4 weeks? My p45 lists my last date of employment as the day they told me I was made redundant.

I’m thinking about getting ACAS involved as the HR department are being vague.
What do you have in writing?

In order to terminate your employment contract, they should have had you sign a mutual separation agreement, which normally you should review with a lawyer.

Have they given you a figure for you notice plus stat redundancy, what about outstanding holiday days?

Sounds, badly run.

Look at your documentation. They cannot withhold pilon,just because you found a job.


Edited by Gargamel on Saturday 5th May 22:01

Muzzer79

13,023 posts

216 months

Saturday 5th May 2018
quotequote all
When is your pay day?

It’s not uncommon to leave in Month 1 but only receive your redundancy and notice pay on the regular salary run in month 2

Jasandjules

72,561 posts

258 months

Saturday 5th May 2018
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What do you have in writing? What date does it specify?

Purple845

Original Poster:

31 posts

103 months

Saturday 5th May 2018
quotequote all
I didn’t sign anything, they just gave me a redundancy letter.

In writing it says I will receive x amount redundancy and x amount pay in lieu of notice. It also said I would receive money for outstanding holiday in April pay day and I didn’t.

Gargamel

16,342 posts

290 months

Saturday 5th May 2018
quotequote all
Purple845 said:
I didn’t sign anything, they just gave me a redundancy letter.

In writing it says I will receive x amount redundancy and x amount pay in lieu of notice. It also said I would receive money for outstanding holiday in April pay day and I didn’t.
what do they say when you contacted them?

Is it a cock up, which wouldn’t surprise me. If you have it in writing you should be ok.

here_we_go

178 posts

135 months

Saturday 5th May 2018
quotequote all
Gargamel said:
In order to terminate your employment contract, they should have had you sign a mutual separation agreement, which normally you should review with a lawyer.
Edited by Gargamel on Saturday 5th May 22:01
Settlement agreements aren't usual, they're the exception. A redundancy letter may well be enough.

Payrolls have a reasonable lead time, so if your redundancy was confirmed in the second half of last month your redundancy pay may not have been arranged yet. However, Gargamel's right in that it sounds badly run and your P45 clearly indicates the payroll know you're leaving. There's no excuse for HR not to be able to confirm all aspects of this, so keep pressing them for info.

Purple845

Original Poster:

31 posts

103 months

Saturday 5th May 2018
quotequote all
Gargamel said:
what do they say when you contacted them?

Is it a cock up, which wouldn’t surprise me. If you have it in writing you should be ok.
The company was purchased by another company and they’re hard to get hold of so most of the communication is via email. They avoid answering questions and said I would receive holiday pay next month but haven’t given me any time scale on anything else.

First they said they’d posted my p45, then a week later said they hadn’t. Then they said my last date hadn’t been confirmed with them before finally sending it to me. It’s all very odd.

Sir Bagalot

7,075 posts

210 months

Sunday 6th May 2018
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Give us an idea of the size of the firm and also the amount of people made redundant as there are set policies to follow.

When I was made redundant I had an agreement to sign, after this was signed I left that same day, P45 within 7 days and paid with 14 days as agreed but both these items were agreed prior to leaving.