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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 45387
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I would like some advice on payment in lieu of notice. I have

Resolved Question:

I would like some advice on payment in lieu of notice. I have worked at this company in a permanent capacity since 2nd June 2008. I am being made redundant with a termination date of 3rd June 2016. I was given notice of redundancy on 6th May 2016, so this is 4 weeks prior to termination date. The staff handbook advises that I am entitled to 1 weeks notice for each completed year of service and my HR department is telling me that I am entitled to 7 weeks notice pay of which 4 weeks will be worked (to 3rd June), so I will be paid for 3 further weeks. Is this correct, or should I be paid 8 weeks notice pay as I will be completing 8 years service by the time I leave?
Another question - we generally get paid on the 17th of the month for that calendar month's pay. Therefore, I have just had my last month's normal pay. The HR Department tell us that in June, we will only get 3 days pay and any holiday pay owing to us. We will have to wait up to 40 working days before getting our pay in lieu of notice and redundancy pay. As far as I can see, this could be as late as the end of July, so we will not get any money until then. Is it legal to delay payment that long?
Please can you advise?
Submitted: 8 months ago.
Category: Employment Law
Expert:  Ben Jones replied 8 months ago.
Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.
Expert:  Ben Jones replied 8 months ago.
So just to clarify, you re being asked to work until 3 June after which you are being paid the remainder in lieu if notice?
Customer: replied 8 months ago.
For Ben Jones - yes that is correct
Customer: replied 8 months ago.
The Company tell me that they only consider completed years of service as at the date that I was given notice, not the final termination date. However, they have confirmed that I am entitled to 8 years redundancy pay
Customer: replied 8 months ago.
For Ben Jones, I keep getting told that I have had an answer, but I am not seeing one, you have just asked a question to confirm the details and that is all
Expert:  Ben Jones replied 8 months ago.
I am still preparing my answer, will post shortly
Expert:  Ben Jones replied 8 months ago.
The minimum statutory notice period applies when notice of termination is given, not when the employment ends. So if the employer gives you notice when you only had 7 years’ service you would be entitled to 7 weeks’ notice. That notice period may take you over to 8 years’ service but that is not when the notice of termination was issued so the 7 weeks will apply instead. This is different to how redundancy payments are calculated as these depend on when the employment terminates. So it is entirely possible that the service for a notice period will be shorter than the service for redundancy payment calculations. In terms of payment, the law does not stipulate when a redundancy payment must be made, however an employee has up to 6 months to bring in a claim for unpaid redundancy pay. So the employer could delay payment as in this case. If you are paid in lieu of notice then technically any payments due become payable immediately after the termination, so this would include your wages and holidays. However, often this does not happen because an employer will just keep the payments in line with their payroll and when these are normally made. The issue with challenging this is that all you can do is make a claim for unpaid wages either in court or the tribunal. However, you will have to pay to issue the claim and by the time it is heard the likelihood is that they would have already processed the payment. So it is a pointless exercise. It does mean the employer can delay payments because in reality challenging this and getting them to pay you earlier is not a quick or cost effective method. I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
Customer: replied 8 months ago.
For Ben Jones,
Thank you for your response. It is not what I hoped, but at least it clarifies what my employer is saying and there is no point in arguing with them. For a large employer I think that it is mean to leave people without funds for a long length of time before paying them. The amount of money we will receive in June is small and considerably less than a normal months pay and this will have to last for up to 2 months, which is harsh. However, if there is nothing we can do about it, then we will just have to manage somehow. I would like to say that when I have previously been made redundant and taken redundancy pay, I have always been paid by other employers promptly and in full and have had no complaints about the way I have been treated. This is not the case for this employer, where I think employees have been treated abysmally - but working conditions seem much harsher now.
Thanks for your clarification.
Expert:  Ben Jones replied 8 months ago.
Sadly you get a diversity of employers - some not as good as others, although the majority are fair. It is a shame this particular one is not, but as long as you get paid what you are I suppose that is the main thing. Hope this clarifies all for you?
Customer: replied 8 months ago.
For Ben Jones,
Yes thanks, ***** ***** are acting within the law, then there is nothing I can do, so I accept the situation as it is and hope that they don't drag it out until the last possible day (I have heard they have done that before - they are bankers, after all!).
Expert:  Ben Jones replied 8 months ago.
Hope so too, only time will tell though. If your original question has been answered I would be grateful if you could please quickly rate my answer by selecting 3, 4 or 5 starts at the top of the page - it only takes a second to do and is an important part of our process. I can still answer follow up questions afterwards if needed. Thank you and all the best
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 45387
Experience: Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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