Redundant with immediate effect pay issues

Hi there,

My partner was made redundant with immediate effect today. He has been with them for over 2 years and they are giving him 2 weeks pay, is he entitled to 2 further weeks redundancy money as he has been given no notice?

Any ideas would be smashing!

Note: I am not an expert, but I have been doing a lot of reading the last few days. Here's my humble opinion:

Payment in lieu of notice and redundancy payment are two separate things.

You have stated he is being offered two weeks pay as he has been with the company two years. That is his redundancy payment, capped at £350 per week, and is non-deductable (tax-free). Exact total calculation will depend on age.

Notice payment is another matter. The amount he is entitled to be paid depends on the definition of the notice period in his contract, and the exact circumstances under which his employment is being terminated. For example his contract may state four week notice by both parties:

1. Standard notice: he remains at work to fulfil his duties, leaves after four weeks with normal salary payment for that month (inc deductions). He has a right to two days' paid holiday in this period to look for alternative work.
2. Garden leave: his contract termination date is in four weeks time however has been told not to return to work. In this case he is again being paid for services rendered only for non-attendance so payment will be the same as 1 (normal salary with deductions).
3. Payment In Lieu Of Notice (PILON): If his contract was terminated effective immediately, that is technically a breach of his contract as sufficient (four weeks in our example) notice was not given.
a. If there is no mention of PILON in his contract then the company are open to being sued so to deter such consequence, payment is offered equivalent to the pay he would have received had he worked the notice (1) or been on garden leave (2). Because this payment is effectively damages in light of potential tribunal, it is not classified as salary and so is non-deductable (tax free) meaning he should receive one months' gross salary.
b. If there are PILON terms in his contract, then it is effectively an agreement that payment will be made in such a circumstance so considered part of his salary package. In this case, it will be deductable effectively making it the same as garden leave (2).


There are possible deviances with regards to 3 concerning the Gourley Principle but I believe this is not enforcible by law so becomes a matter of negotiation between parties.