Odd situation with contractual notice period

Soldato
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16 Jul 2004
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14,075
Oh, I realise that. I have the redundancy payment and accrued holiday payment in hand. It's only the notice one that I am unsure how to approach :)
 
Associate
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Understood - it sounds like you've already looked into PILON in some detail then. I gather that if an employment contract includes clauses suggesting that PILON is an option (i.e. planned for) then the tax office tend to treat any payment as taxable income, and similarly if the company has a 'history' of doing it as a matter of course. I'm not sure who the risk lies with though - if the company gives you a lump sum outside of PAYE, and the tax office subsequently decides it should have been taxable income, is it the company or individual who would then pay the tax? If it does take the tax-free route I'd suggest you make sure that it's in the agreement that the company takes any such risk. If you haven't already, it sounds like advice from CAB or ACAS (etc.) is in order (they can probably advise on the legality of the redundancy consultation process too).
Further apologies if this is drifting too far OT/obvious/etc.
 
Soldato
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14,075
No no, don't apologise - all advice is appreciated wonko :)

I've just spoken with a solicitor about the contract and he has confirmed that ambiguities in the contract will be interpreted in my favour, therefore I can quite safely enforce the more favourable notice terms. He also confirmed that a "month" is a exactly calendar month, and any payment of that should be calculated as a twelfth of my annual salary.
 
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