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Contractual v Statutory Notice - Redundancy situation

2 replies

BossBhean · 22/03/2022 18:19

I'm trying to find information about notice periods for an employee taking voluntary redundancy and getting conflicting or confusing answers so thought I would ask here and see what the consensus was or if anyone can point me to the right place to find the answer.

Employee has opted for voluntary redundancy, they have 7 years service, so are entitled to 7 weeks statutory notice (?) Their employment contract states that the employer has to give 'not less than one week for each completed year, up to a maximum of 12 weeks,' (so 7 weeks notice from the employer?) and that the employee has to give 'not less than 4 weeks notice'.

The 'confusing / conflicting' bit is how much notice does that employee have to actually work once they have officially been made redundant. Is it 4 weeks (contractual) or 7 weeks (statutory)?

If they only work their 4 weeks contractual notice, does the employer have to pay them (PILON) for the remaining 3 weeks of statutory notice or only pay the 4 weeks contractual?

I know statutory trumps contractual, when contractual is less than the statutory minimum, but I can't find information about the other way round, i.e. contractual is less than statutory.

Quite happy to let the person work 4 and get paid for 7, they are a great employee, sorry to lose them and don't want to short change them. But also don't want to pay someone money they aren't supposed to receive (and somebody - not me - down the line might decide they have to pay it back!) Also don't want to make them work longer than they have to or get into a situation where they are being paid by two employers, as they have a new job lined up and would be starting it after the 4 weeks contractual notice is over, but the additional 3 weeks of statutory is still running.

Anyone point me in the right direction of guidance or legislation, so I have it to back me up if this gets queried.

OP posts:
Pootle40 · 22/03/2022 18:21

So yes you need to give them 7 weeks notice. If you agree to let them leave early (say they want to start another job before notice period ends) then you only pay them up to last day they work. If you want to bring their exit date forward you would need to pay PILON.

HopefulProcrastinator · 22/03/2022 18:34

My company (FTSE 100, sizable employee base) reserved the right to make employees work until the end of their contractual notice period when making people redundant. Very active union presence so must have been legal.

Anyone leaving by giving their notice earlier than the redundancy date forfeited all redundancy payments. For some people the money wasn't worth osing out on a new secured job so they left anyway. Others fet they had no choice but to hang on because the redundancy could be worth almost a year's salary.

Double check your HR won't retract redundancy terms if the employee leaves before their redundancy end date before making any offers of PILON.

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