Severence pay

[loveawineloveacrisp]

Bit of a long shot but are there any HR people who have experience of when severence pay is usually paid when an employee reaches agreement to leave the company? My contract states 'with 21 days of my end date' but when I've pressed HR on it they refuse to be more specific. Would it go through the payroll process even though it's not taxable?

Yes it usually has to go through payroll, our norm would be to pay on the next normal payrun date after the last day of service, unless there was a particular reason why not. Some elements of the pay e.g. any pay in lieu of notice or untaken holiday pay may be taxable as well as any ex gratia or redundancy pay over £30k so it all goes via payroll. In exceptional circumstances we might do a CHAPs/BACs payment before the regular payrun. But it will vary from place to place but if your agreement says within 21 days then I certainly wouldn't be counting on getting it any sooner than that...

Yes it would go through payroll - but on what date is impossible to guess. The answer you have is the only one possible - within 21 days of your leaving date.

Ok thankyou. My PILON and final pay which is taxable went though the last payroll, so i don't owe any further tax as the severence pay is less than £30k.