Notice pay

[Scot80]

Hi can someone explain to me notice pay / periods.

My work is being liquidated next week, we finished Friday Feb 14th without any warning or notice.

I'm aware of redundancy pay, holiday pay, wage arrears owed, forced time off pay but what is this notice pay??

I was looking at this On the government website but not sure if I would be eligible.

Oh I worked at my company 17 full years.

 

[ecommerce84]

People are often given ‘Pay in lieu of notice’ when they are dismissed or asked to leave a company immediately rather than working their notice period.

It should mention this in your contract.

I would imagine that’s what ‘notice pay’ is.

 

[Scot80]

Contract just says what I'm required to give
1 weeks notice to terminate my employment.

Then
You are entitled to receive the following periods of notice from the company to terminate your employment.

Over 1 month but under 2 years continuous service -1 week

Over 2 years continuous service - 1 week for each complete year of service to a maximum of 12 weeks after 12 years

Where does this leave me if I was told one morning to stop working and pack up and we will be in touch weather administration or liquidation.

I've worked 17 years there.

 

[Mr D]

https://www.gov.uk/your-rights-if-your-employer-is-insolvent/what-you-can-get

Statutory notice pay
You’re entitled to a paid notice period when you’re made redundant, even if it is not in your contract.

You can claim for statutory notice pay if you:

• did not work a notice period
• worked some of your notice period
• worked an unpaid notice period

Your statutory notice pay is worked out as one week’s notice for every year you were employed, up to a maximum of twelve weeks.

Payments are capped at £525 per week (£508 if you were made redundant before 6 April 2019).





If you requested to claim statutory notice pay, you’ll get sent a letter telling you when you can apply.


Claiming for loss of notice pay (‘statutory notice pay’)
You need an ‘LN’ reference number to make a claim. It’ll be sent after your notice period would have ended. This is usually no more than 12 weeks after you’re dismissed.

You must apply for redundancy first - even if you’re not owed any money.

Employees at the same business can have different notice periods.

Once you have the LN reference number, claim online for loss of notice.

Money you get (or could have got) by claiming benefits will be deducted from your payment.

 

[Scot80]

Sorry if this is stupid question
So I can't get redundancy by that i mean weeks wage x 17 fulls years pay and loss of notice pay.
I can't claim for both just one or other?

 

[Mr D]

Sorry if this is stupid question
So I can't get redundancy by that i mean weeks wage x 17 fulls years pay and loss of notice pay.
I can't claim for both just one or other?

This appears to be what you want, from same link as earlier.


What you can get
What money you’re entitled to depends on:

• how long you were employed
• what was in your employment contract
• your age

Payments are capped.

Redundancy pay
You’re normally entitled to redundancy pay if you:

• have been made redundant
• were an employee
• were continuously employed by the insolvent business for 2 years or more

You’ll get:

• half a week’s pay for each full year you were employed and under 22 years old
• one week’s pay for each full year you were employed and between 22 and 40 years old
• one and half week’s pay for each full year you were employed and 41 or older

Redundancy payments are capped at £525 a week (£508 if you were made redundant before 6 April 2019).

You can get a payment for a maximum of 20 years that you were employed at the business.

Calculate your redundancy pay.

Wages and other money you’re owed
You can apply for unpaid wages and other money you’re owed by your employer, for example bonuses, overtime and commission.

You’re only entitled to money that’s in your employment contract.

You’ll get up to 8 weeks of money you’re owed. It counts as a week even if you’re only owed money for a few days.

Example If you are owed £30 of overtime per week for the last 10 weeks, you’ll get £240 (£30 x 8 weeks).

Payments for wages and other money you’re owed are capped at £525 a week (£508 if you were made redundant before 6 April 2019).

You pay income tax and National Insurance when you get unpaid wages and other money you’re owed. You might be able to claim a tax refund if you’ve paid too much.

Holiday pay
You can get paid for:

• holiday days owed that you did not take (‘holiday pay accrued’)
• holiday days you took but were not paid for (‘holiday pay taken’)

You’re only paid for holidays you took or accrued in the 12 months before your employer became insolvent.

You’ll only get payments for up to 6 weeks of holiday days. Holiday pay is capped at £525 per week (£508 per week if your employer went insolvent before 6 April 2019).

You pay income tax and National Insurance on your holiday payment. You might be able to claim a tax refund if you’ve paid too much.

Statutory notice pay
You’re entitled to a paid notice period when you’re made redundant, even if it is not in your contract.

You can claim for statutory notice pay if you:

• did not work a notice period
• worked some of your notice period
• worked an unpaid notice period

Your statutory notice pay is worked out as one week’s notice for every year you were employed, up to a maximum of twelve weeks.

Payments are capped at £525 per week (£508 if you were made redundant before 6 April 2019).

Pension contributions
Contact the insolvency practitioner or official receiver if you’re missing contributions to your pension.

 

[Scot80]

Thanks what happens if company can't pay some or all of it. Do I need to claim through the government

 

[Mr D]

Thanks what happens if company can't pay some or all of it. Do I need to claim through the government

You claim through the government.

 

[Scot80]

Thanks

At what point can i get a job without it effecting everything?

 

[Newchodge]

Have you considered ringing ACAS?

 

[Lisa Thomas]

Is the Company formally entering Liquidation?

If so the proposed Liquidators will write to you both before and after the Company has been Liquidated.

They will give you a reference number you need to fill in to make a claim from the Redundancy Payments Office/The Insolvency Services.

 

[Scot80]

So I've made my claim for redundancy and other monies as received letter from liquidator. As you'll know it can take up to six weeks.

At what point can i start looking for a job without this claim being effected? Now? Or do I need to wait for process to end??

Also if i get a job and I come to claim notice pay I'm owed in 12 weeks would this claim be pointless as wages will be taken off to leave me nothing anyway?

 

[Lisa Thomas]

Notice pay will be mitigated by any income/benefits earned in the notice period.

 

[Scot80]

My notice is 12 weeks so dependant on when I get a job say within a week or two it's probably not worth claiming on this. If i find a job six, eight, ten weeks into notice period I'm best to make a claim and get something back.

Hope this makes some sort of sense.

 

[Newchodge]

Surely, getting a job should be your priority, if that impacts your compensation at least you will have something coming in going forwards.

 

[Scot80]

Yeah true thanks

My redundancy and money owed claims are being processed. I take it even if I found a job tomorrow this will not be effected by me finding a new job right away, only notice period amount.

 

[Scot80]

Notice pay will be mitigated by any income/benefits earned in the notice period.

We didn't get any notice or work any notice period we just got sent home and didn't return.the company is insolvent.

I had this conversation with a work friend when I mentioned your post above. He said...

Thats only if you take up a new job during your notice period. We didn't get any notice

 

[Lisa Thomas]

It's not only if you take a new job during the notice period as it includes any income, for example benefits.

 

[Lisa Thomas]

https://www.gov.uk/your-rights-if-your-employer-is-insolvent/apply-money-owed

 

[Scot80]

Sorry can get bit confusing for someone not used to this.

I was there 17 years so 12 weeks notice .

We were called in 14th Feb told of situation and told on spot to go home.

We never returned as company is now in process of liquidation. I've completed my redundancy forms and sent them via online with government redundancy service.

What my friend is saying is because we didn't get any notice or work any notice period we'd be due this minus benefits . Whether or not we get job right away or not won't effect this due to situation.

 

[Lisa Thomas]

You are entitled to 12 weeks notice pay.

Let's say hypothetically you are paid £300pw gross, so £3,600 gross for the full 12 weeks.

If you claim benefits for 8 weeks (lets say 2,000) and then get a job at week 10 and earn say £1,000 over 2 weeks, all of that income will be deducted and you would be paid the difference of £600 gross.

Its the redundancy pay that is not mitigated.

 

[Scot80]

Thanks I understand now.
Say what i earn 4000 in those weeks but gross is only 3600 for those twelve weeks. I won't be eligible for anything obviously.

 

[Newchodge]

The 12 weeks should start from 14 February

 

[Scot80]

Thanks so not the termination date of contract 16th March as that's official termination date.

 

[Newchodge]

Thanks so not the termination date of contract 16th March as that's official termination date.

Are you getting pay for 14 February to 16 March?

 

[Scot80]

No we aren't so that will need to be claimed through forced time off.

 

[Lisa Thomas]

That sounds a bit odd to me, it sounds as if you were given notice on 14th February that your contact would terminate on 16th March so it seems that you were given some notice.

The Insolvency Practitioners should be able to answer all your queries - have you spoken to them?

 

[Newchodge]

They were told not to come to work, and have not been paid since 14 February, the IP was appointed from 16 March. I would argue that if they are not receiving pay for the interim period the notional notice period for which they are claiming through the Insolvency service should be deemed to run from 14 February.

 

[Scot80]

That sounds a bit odd to me, it sounds as if you were given notice on 14th February that your contact would terminate on 16th March so it seems that you were given some notice.

The Insolvency Practitioners should be able to answer all your queries - have you spoken to them?

We were called in and told company (small family company) was having financial problems, and sent home Feb 14th
The director kept us updated with texts firstly saying accountants were coming in then saying thinking about voluntary administration, then told all avenues had been explored but insolvency was only option.

We were paid Feb 14th for week previous work.(still owed a week wage though that should have been paid 21st Feb). Since then we've been paid no wages, effectively forced off work and only getting confirmation of the liquidation process and able to claim redundancy and termination of contract on 16th March .