Lieu of notice and service question.

If you are due for example 5 weeks notice and within that 5 weeks notice you would complete another full years service should that count towards your service?

The reason I ask is the company has put a live redundancy package on the table and it's only valid until the end of the month.

The company are willing to pay us 60 extra calander days wages if we sign and leave at the end of the month.

However a few guys are only 2 or 3 days past the end of the month before serving another year and the company refuse to accept this as another year service.

On the other hand all holidays you would be entitled to up to the end of your notice period will be paid for.

So if you are getting holidays paid for during what is your notice period, why would service not count?

Does the employer have the right to pay in lieu of notice and terminate immediately in the contract of employment?