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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 49858
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I have been advised that I am facing redundancy. I have an

Customer Question

I have been advised that I am facing redundancy. I have an annual salary of £90k, and as per my contract, I am entitled to 2 months notice. I have calculated that this week be around £15k. Is that account taxable? Also, I have not used any of my annual holidays, does the company have to pay for that?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Ben Jones replied 1 year ago.

Hello, is the 2 months notice in addition to the redundancy pay you will get? Also are the unused holidays only relating to the current holiday year?

Customer: replied 1 year ago.
As per my contract, " This contract of employment is terminable by either party giving Two months or statutory
minimum notice whichever the greater notice is. The Company reserves the right to pay
salary in lieu of notice period.
Once notice of termination has been given by either you or the Company, the Company
may place you on garden leave and/or exclude you from any premises of the Company.
Salary and other contractual benefits shall continue in full during periods of garden leave
and / or periods of suspension"Yes, the unused holidays relate to this year.
Expert:  Ben Jones replied 1 year ago.

Hello, sorry I was offline by the time you had replied. When it comes to termination payments, your redundancy pay should be tax free up to £30k. Your notice period is separate to that and as it is a contractual payment it will be taxable as normal. If you have outstanding holidays for the current holiday year then you are entitled to get paid for these as part pf your termination payment. However, what could also happen is that the employer asks you to work your notice period and they force you to take your holidays during the notice period, which means that you only get paid once for these, i.e. you will get paid your holidays for the days you take them but you will not get notice pay for them on top of that. To do this the employer will be required to give you specific notice as determined in law and that would depend on how many days holiday they want you to take at a time.

This is your basic legal position. I have more detailed advice for you in terms of the notice periods they are required to give you to take your holidays, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there is no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you

Expert:  Ben Jones replied 1 year ago.

Hello, I see you have read my response to your query. Please let me know if this has answered your original question and if you need me to discuss the next steps in more detail? In the meantime please take a second to leave a positive rating by selecting 3, 4 or 5 starts from the top of the page. The question will not close and I can continue with my advice as discussed. Thank you

Expert:  Ben Jones replied 1 year ago.

Hello, do you need any further assistance or are you happy with the above response? Look forward to hearing from you.