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Argument for notice pay as redundancy payment

(5 Posts)
Cosmosis Tue 07-Jul-09 17:33:28

I am being made redundant and as I've not been here a year yet, I'm not entitled to any redundancy pay. I have asked if I can have my 2 months notice and holiday owed as a tax free redundancy payment rather than work my 2 months notice and come away with nothing. I have said that I understand I would probably have to sign a compromise agreement to do so.

Company are not sure and are thinking about it.

Can anyone help with any arguments to back up my case? Really worried I won't find another job and will have nothing sad

flowerybeanbag Wed 08-Jul-09 12:10:04

Does your contract say anything about pay in lieu of notice? If your contract says your company can pay in lieu of notice, then they could but it would not be tax free as it is money you are contractually entitled to. If it doesn't say they could do that, then it would be tax free as it would essentially be compensation for breach of contract. Holiday owed wouldn't be tax free.

In terms of an argument as to why they should let you go early, well it's difficult to think of anything tbh. There's no financial benefit for them and if they do have work for you for the duration of your notice period, it's hard to see why they would let you go early unless they feel there may be confidentiality issues or similar. I suppose the only advantage is you won't accrue any more holiday if you go now.

Cosmosis Wed 08-Jul-09 13:06:40

I'm not sure flowery, I'll check re contract.

Thanks, I'm just hoping they will do it because they feel guilty! I have a v strong suspicion they knew this was going to happen when they took me on, but nothing I can do about it as I've been here so little time.

Cosmosis Tue 14-Jul-09 10:45:44

They have agreed to it

thanks for your advice flowery.

flowerybeanbag Tue 14-Jul-09 14:58:06

Excellent news, sounds as though the guilt kicked in! Hope you find something else quickly.

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