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Jenny
Jenny, Solicitor
Category: Law
Satisfied Customers: 6390
Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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Dear Sirs, I am being made redundant on he 31st of this month,

Customer Question

Dear Sirs,
I am being made redundant on he 31st of this month, and I have been with the company for a little over one year.
My title is Business Development Manager
My contract also states that I have a 3 month notice period, below is what is being offered, but although this all seems ok I have been advised to speak to someone ref the way the payment is made up and or the amount of deductions made to the final payment. Please see the offer break down but also take into account that there will be additional holiday entitlement to add to this.
Notice period = 3 months, so we would end up with
3 months’ salary of 5,000 GBP
3 months’ car lease of 850 GBP (amount is incl. VAT)
3 months’ telephone and Ipad of 100 GBP
One of payment of 1,000 GBP
Total is 18,850 GBP
We are looking at the 31st of October as the end date.
Submitted: 2 years ago.
Category: Law
Expert:  Jenny replied 2 years ago.
Hello my name is ***** ***** I happy to help you today.
The list below does not appear to show any deductions, are you being told some are being made?
Customer: replied 2 years ago.
Yes the £18 850.00 will also have approximately 2 weeks holiday entitlement to add to this figure, I believe this is the package before any stoppages. After talking to my companies financial and HR director he has advised me or implied that I need to take either HR or financial advise on how the payment is made to me as I asked him to pay me with obviously the most benefical manner? I did say to him not to hit me with too much TAX!
Expert:  Jenny replied 2 years ago.
Do you know if this sum is being paid by way of a settlement agreement?
Customer: replied 2 years ago.
Yes I believe it is ?
Expert:  Jenny replied 2 years ago.
Ok thanks, ***** ***** know if there is a clause in your contract which expressly gives the employer the right to pay you in lieu of notice?
Customer: replied 2 years ago.
This is the email sent to me and forwarded to the head of HR & Finance.Andy has agreed to go on the 31st.We now need to write a formal letter to him.I will get a draft from the lawyer tomorrow. Could you work his final figures out. We need to include his outstanding holidays, and the holidays due for his 3 months.Not certain if he gets it tax free. I will ask the lawyer tomorrow.
Customer: replied 2 years ago.
In answer to your previous question:- Ok thanks, ***** ***** know if there is a clause in your contract which expressly gives the employer the right to pay you in lieu of notice?I believe not
Expert:  Jenny replied 2 years ago.
Ok the position on tax with regards ***** ***** notice element depends entirely on the wording of your employment contract. If the employment contract allows for pay in lieu of notice then the money is consdiered to be 'in connection with your employment contract' and is taxable.
It will be better for you if no mention of the right is in the contract because the payment will then amount to pure compensation and will not be taxable. It seems that this is the case but you will need to check.
The £1000 element is certainly tax free.
If you have any further questions please do ask.
Customer: replied 2 years ago.
I see no mention of this in my contract, do you have an email address I can maybe scan and forward you a copy?
Expert:  Jenny replied 2 years ago.
If you would like me to review the contract I will have to do this as an additional service. I will offer to do this now you should receive an email.
Jenny and other Law Specialists are ready to help you
Expert:  Jenny replied 2 years ago.
Please see details below.
Customer: replied 2 years ago.
I will scan a copy of contract to shortly
Expert:  Jenny replied 2 years ago.
Ok thanks. I'll look at it when it arrives.
Customer: replied 2 years ago.
I am just sending it through
Expert:  Jenny replied 2 years ago.
thanks
Expert:  Jenny replied 2 years ago.
Hi I haven't received your contract yet. I have to go into a meeting for an hour at 10.30 so if I don't receive it before then I will have to get back to you later this morning.
Customer: replied 2 years ago.
I have just sent it through
Customer: replied 2 years ago.
Did you receive it ?
Expert:  Jenny replied 2 years ago.
Hi I've been in a meeting as mentioned above. I have had 2 emails from HP scanner but no attachment. Please can you try again. It is probably best to save the scan as a PDF document at your end then send it in an email to me.
Customer: replied 2 years ago.
Apologies I will try again, I don't understand probably got some thing wrong !
Expert:  Jenny replied 2 years ago.
No problem
Customer: replied 2 years ago.
I have sent you the main contract via my works email account.***@******.*** . Not the whole hand book
Expert:  Jenny replied 2 years ago.
On the basis of the contract there is no right to pay in lieu of notice therefore the payment will be tax free.
Customer: replied 2 years ago.
When I ask for this can you give me the correct wording to start my email please.
Expert:  Jenny replied 2 years ago.
I'll email you from my email account about this.
Customer: replied 2 years ago.
Many thanks for your help
Expert:  Jenny replied 2 years ago.
No problem just sent you an email.
Customer: replied 2 years ago.
I have replied to your mail
Expert:  Jenny replied 2 years ago.
Thanks. NO need to respond on this thread anymore : )