Q&As

Is a laid off employee who wishes to claim a statutory redundancy payment through the lay off and short-time provisions of the Employment Rights Act 1996 entitled to receive notice pay or a payment in lieu of notice once they have resigned?

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Published on LexisPSL on 20/04/2020

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Is a laid off employee who wishes to claim a statutory redundancy payment through the lay off and short-time provisions of the Employment Rights Act 1996 entitled to receive notice pay or a payment in lieu of notice once they have resigned?

In order to receive a statutory redundancy payment, a laid-off employee must resign from their employment, after having notified their employer of their intention to claim a redundancy payment. The resignation must be done in accordance with the notice requirements stipulated in their contract, or on one week’s notice, whichever is the longer notice.

This requirement for a minimum of one week’s notice reflects section 86(2) of the Employment Rights Act 1996 (ERA 1996), which provides that the statutory minimum notice to be given by an employee to an employer is one week (after the employee has continuous service of one month or more).

Entitlement to pay during the notice period, or to a payment in lieu of notice, will depend on the terms of the employee’s contract. Issues to consider will be whether the employer can elect to make a payment in lieu of notice (PILON) where the employee has given notice and whether the PILON provision specifies the rate at which the employee must be paid, etc. Th

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