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Odd situation with contractual notice period

Discussion in 'General Discussion' started by PMKeates, 8 Mar 2010.

  1. Mercutio

    Soldato

    Joined: 11 Jun 2003

    Posts: 5,010

    Location: Sheffield, UK

    If your notice is paid, thats all good. If you are being made redundant you're due another few hundred quid. The gov will cough it up if your employer doesn't.
     
  2. PMKeates

    Capodecina

    Joined: 16 Jul 2004

    Posts: 14,052

    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 :)
     
  3. wonko

    Wise Guy

    Joined: 21 Jul 2008

    Posts: 1,478

    Location: Outside the asylum

    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.
     
  4. PMKeates

    Capodecina

    Joined: 16 Jul 2004

    Posts: 14,052

    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.