Myself and my small team are being made redundant very soon. In total approx 40 people could be affected throughout the business over the next few months. The consultation proces has just started. Initial verbal communication is that we will be paid in lieu of notice. I am on 3 months notice and some of my team on are 2 months.

At the first consultation meeting one question raised by a representative asked, "does holiday accrue during the notice period, for which we will be paid in lieu". The answer back was "No".

If however we worked out our notice (which I assume we could in theory opt for), we would normally accrue holiday at 2.5 days per month, so why would we not accrue this holiday if we are paid in lieu of notice?

Also, I am normally due an annual bonus, which according to my contract, can be withdrawn with at least 1 months notice. The year has just started and no communications have been made about this years bonuses and objectives. If they don't formally withdraw this, could I be entitled to a pro-rata'd amount on the day I leave. If so, again, in theory could this pro-rata'd entitlement be increased by my 3 month notice petriod??

Any help/guidance would be appreciated as our HR department have a history of getting things wrong.

Chris,

You would be entitled to a payment-in-lieu of any holiday entitlement that would normally have accrued during the notice period.  Holiday is a statutory / contractual right and thus you are entitled to compensation accordingly.

The annual bonus would require consideration of its specific contractual terms i.e. whether you must be employed by the Company at the time payment would normally be due etc.

Andrew

Hi Andrew

Sorry to go over this again, but we have had some further feedback from our "HR experts" here.

In my Contract of Employment it states that "Payment in Lieu will be calculated only on my basic salary". Also in a section in the staff handbook it states that "any payment  in lieu for your notice shall be equal to the normal basic salary only".

Also in the staff handbook it states "if you receive pay in lieu of notice you will not also be entitled to recieve holiday pay for your holiday entitlement that would otherwise have accrued during your notice period"

Because of the above they are saying that we would not be entitled to Car Allowances and Private Health Care for the notice period being paid in lieu, despite these being in our Contracts of Employment. Also holiday will not accrue in the notice period.

It therefore looks like we have no grounds for argument on both counts. Please advise however if you think otherwise.

Many thanks for your time, much appreciated.

Kind Regards

Chris