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Pay in lieu of notice/maternity leave

11 replies

LadyMedea · 31/07/2014 19:18

I've just handed in my notice whilst on maternity leave. I needed to give three months notice so resigned three months before I was due back.

I was fully expecting to have to repay my occupational maternity pay minus my last bit of SMP, annual leave and bank holidays owing.

However I received an email from my HR department saying I would receive three months pay in lieu of notice and my annual leave owing (I decided to not push on the bank holiday as I was just relieved not to be paying anything back). I took the 'three months pay' to mean what I would have been paid in the next three months I.e. My last little bit of SMP.

I've now received my final pay slip (they terminated my service on 20 July) and in addition to annual leave and SMP, I have been paid three months at my full salary. A not insubstantial sum. This is listed on my pay slip as 'pay in lieu of notice'

This seems to be deliberate on the part of my ex employer, but I'm not sure if it is a mistake. For now we have just put the money in our instant access savings for safe keeping.

My question is, if it is a mistake, at what point can I assume that they wouldn't be able to ask for it back? After my P45? After the end if the tax year? What is my position?

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atticusclaw · 31/07/2014 19:24

Have you been there 12 years (i.e were you entitled to statutory notice or enhanced contractual notice). If you were entitled to statutory notice only then the notice pay needed to be at full pay rather than SMP. If not then I'd just assume they've been generous (or didn't know the position so thought they'd err on the side of caution).

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LadyMedea · 31/07/2014 20:24

Only been there 2 and a bit years.

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LadyMedea · 31/07/2014 20:48

I've just found this.... I had absolutely no idea! Woo hoo for my long notice period!

www.gov.uk/handing-in-your-notice/payment-during-your-notice-period

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atticusclaw · 31/07/2014 23:35

Actually that's not right. They've ignored the effect of one of the provisions of the ERA. But in any event its highly unlikely anyone is going to come after you and seek to take back the money.

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LadyMedea · 31/07/2014 23:39

How strange... Is it something maybe to do with the payment in lieu of notice as they want to terminate my employment early?

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LadyMedea · 31/07/2014 23:41

It's almost like it's a settlement but we've had no discussions. All I did was resign.

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atticusclaw · 31/07/2014 23:42

section 86-91 Employment Rights Act. You are entitled to more than statutory notice (which for you would be two weeks) and so the statutory guarantee on pay during your notice period doesn't apply.

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atticusclaw · 31/07/2014 23:44

I suspect they've read the incorrect information on that gov.uk page and that's why they've paid it in the way they have.

Anyway you've had more than you're entitled to and so I'd just spend it!!

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EarthWindFire · 01/08/2014 00:02

Anyway you've had more than you're entitled to and so I'd just spend it!!

Be careful with that however, there was a thread on here a couple of months ago where an overpayment accidentally happened and they were chasing for the money back, which apparently they were entitled to do.