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Redundancy timing question

(5 Posts)
Thinkofanumber Tue 05-Jul-11 09:58:47

It looks like I'm going to be made redundant at the end of August.

I will be given my termination notice probably at the end of next week.

I will have been with the company for 12 years on 7th August.

My question is I guess I should be given 11 weeks notice, but am I entitled to 11 or 12 weeks redundancy pay? (I'm 40 so don't qualify for the extra half week from age 41).

I assume I can have pay in lieu of notice as they want to close the office before my notice period expires.

Please advise kind mumsnetters.

MovingAndScared Tue 05-Jul-11 11:46:30

My friend got pay in lieu of notice when she got made redundant
I would imagine it is 12 week pay as you will have worked there 12 years by the time you leave - and is it just statatory as there is an upper limit per week on the redudancy pay

but with both question ask HR to confirm in writing

lateatwork Tue 05-Jul-11 13:26:46

if you get PILON at end of next week, you wont actually be employed on August 7th and thus I dont believe you will get 12 weeks redundancy pay. I am assuming that they are offering statutory pay by the way you have framed your question..

I think you need to do some calculations to work out what the best scenario is for you. When they calculate PILON, if you do NOT have a PILON clause in your contract, then they are breaching your contract and as part of the package will have to offer to pay out any benefits that are owed to you during your 11 week notice period, in addition to the salary element. It may be beneficial, for example, to split and say do gardening leave to take you beyond August 7 and then take PILON as it would give you an extra weeks notice and an extra weeks redundancy- BUT whether this is worth it depends on your salary and benefits package and tax situation. But you need to do the calcs as their are tax implications and what you want to do is maximise the amount of money you get. If you do have a PILON clause, then you need to read your contract to see what the details say and calculate accordingly.

BTW, I am not in HR, just have had some recent experience (unfortunately..)

good luck!

flowery Wed 06-Jul-11 09:19:36

Redundancy pay is calculated on service up to a 'relevant date'. Usually that's the termination date which for you, if you get your full notice, would mean you get 12 weeks redundancy pay. If you get PILON and your employment ends before it would have done had you received your full statutory notice, you should get redundancy pay as if you had been given the correct statutory notice.


Thinkofanumber Thu 07-Jul-11 22:29:50

Thank you all.

flowery, I'd missed the 'relevant date' bit on the direct gov website, that's exactly what I needed.

So, yes, I will get 11 weeks notice and 12 weeks redundancy.

Hope they don't cock it up since they are an accountancy firm! (But not holding my breath grin )

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