Loss of benefits

I was made redundant yesterday but my former employer does not wish me to work my three months notice. In addition to my salary I was in a contributory pension scheme and health scheme.

I do not have a PILON clause in my contract but my former employer refuses to honour my pension or health benefits for the period of my notice even though I am prepared to pay for them. Can I claim for these legally through the courts or ET?

My former employer is arguing that their redundancy package adequately compensates me for this loss but as I am unable to buy these for the three month notice period I believe this is a genuine loss and that the redundancy package offered is the same irrespective of whether you were in the health/pension scheme or not.

Dear Sue

Sorry for not responding to you, but as you can imagine this site is flooded with queries at this time and we try to come back to everyone asap.

Firstly, I am sorry to hear about your situation. Did they follow the statutory redundancy process to come to the decision to terminate you on grounds of redundancy and do you think the process/selection was fair?

If you dont have PILON in your contract you are still entitled to receive your contractual notice pay and if PILON is not included in your contract this amount can be made free of deductions.

You are entitled to be paid or to continue to receive the benefits you would have continued to have received should you have worked your notice, all bar holiday pay.

If your employer is stating that compensation for the loss of these benefits is in your redundancy payments, then they should be breaking down your SRP, notice in lieu and the amounts paid for the loss of the benefits. Have they done this?

Therefore, you should either appeal against the redundancy process and selection or raise a grievance against the payments and request a breakdown of them.

With regards to your query that if an employer breaches the contract is holiday pay that is denied (ie not worked/accrued after the breach) taxable or not?

Any holiday pay paid is subject to deductions. How has your employer breached the contract? You are only entitled to be paid holiday pay that has been accrued and untaken up to the date of termination. No holiday pay is paid for when PILON is made as stated above.

Hope this helps, but if you believe that this is all unfair you should either appeal or raise a grievance to ensure that the payments made to you and the process followed is fair.

Best wishes

Carol