Payment in lieu of notice

09 July 2019

It isn’t always possible for a company to keep an employer’s job open for the duration of the Statutory Redundancy Notice Period.

An example would be where the need for redundancy occurred because of the rapid escalation of a situation that meant that premises could not be staffed during what would have been the employee’s notice period. Another would be where relocation would make it unreasonable to expect an employee to travel long distances to reach the workplace.

Employers might also prefer staff who have been made redundant not to attend the workplace, perhaps to prevent them from handling sensitive data or being privy to information that could be commercially valuable elsewhere.

When employees have no choice but to not work during a redundancy notice period, or if employers impose such limitations, they must still be paid as though they were still in employment. That is, their full notice payment (usually their normal wages) plus any other pension contributions, health care insurance etc. must continue to be honoured.

Peninsula Business Services can provide redundancy advice and assistance on any aspect of payments in lieu of notice. Contact us online today, call 0800 0282 420, or use our callback form to arrange for us to get in touch at a time that is convenient for you.

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