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My employer has given me notice of redundancy. I am just short of two years service so my employer is not paying me redundancy pay.

My contract specified that I am to be given 6 weeks notice. My employer has offered to pay me in lieu of notice with my last day of work being 21st June 2018.

I have consulted ACAS who told me that redundancy pay is normally calculated from the date the notice period ends (relevant date).

When I brought this to my employers attention they said that because they only had to provide statutory notice and that I am not eligible for any redundancy pay.

Section 145 of the Employment Rights Act describes how the relevant date is calculated.

Subject to the following provisions of this section, “the relevant date”—
(a) in relation to an employee whose contract of employment is terminated by notice, whether given by his employer or by the employee, means the date on which the notice expires,

But my employer is claiming something along the lines of what is described by XpertHR:

If an employee is dismissed without the statutory minimum notice, including if he or she receives a payment in lieu of notice, the relevant date is the date on which the minimum notice would have expired had it been given.

Where because I am not eligible for statutory notice, the relevant date does not have to be calculated from the end of my contractual notice period.

TLDR: Does my employer have to pay me redundancy pay?

  • Started work 27th June 2016
  • Notice period 6 weeks
  • Notice began 14th June 2018
  • Last day of work 21st June 2018
  • Notice period ends week commencing 23rd July 2018
  • Under what basis (contract, statute, etc.) would you be eligible for redundancy pay? – Acccumulation Jun 18 '18 at 17:59
  • @Acccumulation Could you explain what you mean please? My contact makes not mention of redundancy at all. – James Fenwick Jun 18 '18 at 18:01
  • Sorry @Acccumulation I completely misread your comment. The redundancy pay would be statutory. – James Fenwick Jun 18 '18 at 18:04
  • What does "the legislation only refers to statutory notice" mean? What legislation makes what reference to what statutory notice? – Acccumulation Jun 18 '18 at 18:19
  • @Acccumulation I think it’s the Employment Rights Act – James Fenwick Jun 18 '18 at 18:21
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If your contract doesn't say that payment in lieu of notice is allowed then you are in your rights to ask them to fulfil their contract. Which means paying you until the end of your notice period, then whatever redundancy payment is required.

If it is in your contract that they can pay in lieu of notice, then you should contact an employment lawyer. There's a good chance that they would have to pay you what you would have received without PILON. You can tell them that you believe they don't have the right to avoid redundancy payment by giving you PILON, and if they do you will get a lawyer.

On the other hand, the employer can change their mind, give you six weeks notice, and ask you to work until the end of the notice, so you wouldn't gain much (except being employed for six more weeks).

  • Thanks for the answer. They have already given me a letter specifying my final day of employment, would they still be able to change their mind? – James Fenwick Jun 18 '18 at 21:39
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    If you say you don't accept PILON, (and if you have the right to not accept it, or if you make them believe that you might have the right to not accept it) then their proposed final day would make their notice much too short, so you wouldn't have to accept it. So they would have to lengthen the notice period to the correct time, and then they can ask you to work. But it's all about negotiating and the company deciding what they want to achieve. – gnasher729 Jun 18 '18 at 22:03

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