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Redundancy lieu of notice

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Beam Posted: 26 Jun 2012 9:08 PM

Does a company have to continue to pay benefits (health care etc) and contribute to the employees pension during the lieu of notice period when a person has been made redundant, 
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Max replied on 28 Jun 2012 9:14 AM

Hi

On what you've said, no, I don't believe they would.  But you may want to clarify what you're asking as I may have missed the mark.

"Lieu of notice" usually means to be paid instead of working it, e.g. under a redundancy an individual is given 10 weeks notice and will have a leaving date of 10 weeks away, however it is agreed to pay the individual "in lieu of notice", so they get 10 weeks pay but their leaving date is this week, therefore I would argue the benefits you mention would finish with the new DOL.

If the above isn't what you meant in regards lieu of notice, just let me know.

rehards

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Beam replied on 28 Jun 2012 8:12 PM

Hi Max

You haven't missed the mark but   I have seen split responses to  this question. 

What I'm am trying to locate  is a case law to cite,  to clarify the legal position. Unfortunately lawyers are extremely expensive and trying  to find  a practice that will give advice on the green form without saying they have reached their quota is nay impossible 

 I understand where you are coming from, but if the company ended the contract of employment by redundancy, would it not follow that any pensions/ benefits  lost in the lieu of notice period ,would leave open to a  claim in the shedule of losses,  under normal  conditions if you worked your notice you would be entitled to such  and the company would continue to pay into your pension or continue with any benifits until your leaving date.

If the employee  had contributed to the ending of a contract  by grievance or  disciplinary then this might be a case not to pay, however an employee does not have any  control over redundancy and therefore his/her rights are infringed. Or am I looking at a grey area

Regards

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Memphis Belle replied on 29 Jun 2012 5:29 PM
Hi
Pay in lieu of notice is a contractual payment. After termination you are no longer employed therefore benefits including holidays will not accrue. If you think about it - benefits accrue as part of the working 'arrangement' between employee and employer - why should you get the benefit when you're not doing the work? Having said this, most organisations have a precedent to follow during redundancy for example, we do pay leavers via redundancy Company funded benefits as part of PILON, however we do not pay holiday. It is not a grey area. There is no legal precedent regarding PILON as it's a contractual and not statutory arrangement. What does your contract state about PILON? What does your employer usually pay for PILON, i.e. what precedent is set? If other people leaving yourr organisation via redundancy are being paid benefits and you are not you clearly have a case. If they don't then it's unlikely that you do. If those benefits are of importance to you you can always offer to stay and work your notice to be sure of receiving them. Down side is you'll miss out on the three months in order to find a new role. You won't find case law as the law is clear on this point. Unless of course your employer is breaching the contract of employment.
It's probably not what you want to hear, but it might be best to focus on your next job and channel your energies elsewhere. Best of luck to you, MB. 
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Memphis Belle replied on 29 Jun 2012 5:34 PM

Just to add to my message above - I thought I'd read you're on three months notice - for 'three months' in my message above replace with what your contractual notice period is. MB,

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