Pay in lieu of notice

[MoonKnight]

Hi

my brother has been made redundant after 9 years. It was effective immediately. His notice period would be 10.5 weeks but his ex employer is saying that they will not be paying him in lieu of notice. Are there any circumstances where this is legal?

thanks

Not that I can think of, and he should also be due statutory redundancy pay on top of his contractual notice period.

Definitely not good practice
He needs professional advice ASAP

If he's been sacked for gross misconduct he'll not be entitled to anything.

If it's genuine redundancy then depending on the number of people affected he's either entitled to statutory redundancy depending on age and years worked or the company could pay an additional sum in lieu of holding a consultation plus statutory redundancy. The employer can choose to pay more than the statutory redundancy or they may be an agreement with a union or a works council to pay more.

His redundancy pay is set out in the letter but the pilon is marked at £0. His manager confirmed it was correct and said no one would be receiving it (multiple redundancies)

www.gov.uk/redundancy-your-rights/notice-periods

They need to either employ and pay him till the end of his notice period or let him go immediately but pay him in lieu of notice

He’s just dug out his old contract and there’s a sentence that says ‘we reserve the right to pay in lieu of notice’

does that mean he doesn’t get it? Or that he should have to work the 10.5 weeks notice?

sorry, he has mild learning difficulties and is talking to me by text message (he’s in wales I’m in Scotland) and needs my help to word things.

‘we reserve the right to pay in lieu of notice’ this means they reserve the right to get him to leave immediately and pay him his notice, as opposed to making him work the notice period.

They cannot refuse to pay him his notice period unless he has been sacked for gross misconduct.

we reserve the right to pay in lieu of notice’

That means that they I have the option to pay notice rather than have you work it. So basically they can tell you not to come in tomorrow as long as they give you the money for the notice period.

This sentence supports your brothers claim for PILON rather than giving them a justification for not paying

Thank you for all your help.

So pay in lieu of notice would mean instead of notice. So it's one or the other, you work your notice period in which time you get paid, OR they pay you instead of giving you a notice period.

What it says in his contract regarding pay in lieu of notice doesn't really tell you anything about a redundancy package, and it doesn't sound like there is likely to be one but there is more info about statutory redundancy in the UK here

Give ACAS a call. I just went through redeployment and they were really helpful.

If this is a redundancy, his employer must pay him his notice. They must also pay statutory redundancy pay as well as paying for any unused holiday entitlement. The only circumstances under which an employer can terminate employment immediately without paying the notice period is when the employee is sacked for gross misconduct. Even then, the employee is still entitled to receive payment for unused holiday entitlement.

Thanks for all your help. I spoke to acas on his behalf and armed with the absolute knowledge it was illegal, drafted an email to send his ex employer.

They have now backtracked and claimed a clerical error, and he will receive all monies owed this Friday!

Great news!

That's wonderful. What a relief for him.