# Made redundant on the spot



## pocoloco (17 Jul 2009)

Hi I have been working for a company for 13 months in the IT sector and yesterday I was called into the office and told that due to severe commercial pressures within the company I was being made redundant. Naturally I was shocked. They paid me up to date together with holiday pay. I know things have been tough but I hadn't bargained on going out in this manner as I have bills, mortgage etc etc.

I have a contract which states "the company can terminate your employment due to circumstances beyond its control at any time" and that "reasonable" notice will be given. I would have thought reasonable is a few weeks at least to give me time to start looking elsewhere.

I know this question has probably been asked before but can they do this?? I know the company doesn't have much money (if any) but can I be made redundant on the spot like this?????


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## Towger (17 Jul 2009)

pocoloco said:


> can I be made redundant on the spot like this?????



Yes, but they have to give you 'Pay in lieu of notice' + any outstanding holiday pay etc. BTW, Pay in lieu of notice is not taxed through the _*'PAYE'*_ system as it is unearned income.


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## Setanta12 (17 Jul 2009)

Be very wary of advice re PILON* given around these threads.

Its not that simple. Its not even as simple as saying 'if entitled to it under Contract of Employment - taxable; if no entitlement - not taxable'.

What does your contract state re your T&Cs ?


*Pay in Lieu Of Notice (PILON)


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## pocoloco (17 Jul 2009)

thanks for your help. My contract is vague on terms and conditions in relation to pay in lieu of notice. As I was made redundant on the spot and only working for 13 months, am I entitled to another week's pay? ANd is it taxed?


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## Buttons (20 Jul 2009)

Contracts may not state pay in lieu of notice if been made redundant but if your cantract states for example if you hand in your notice "you must give two weeks notice" then you are intilted to two weeks pay plus your holiday pay and yes it will be taxed. You are also entilted to get some of your tax back you have paid if you have not gone straight into another job. You should check this with your tax office, every little helps these days.


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## elcato (20 Jul 2009)

Just a point to the original query, its normal practice as far as I know to inform someone of redundancy and ask them to vacate the workplace immediately. In my last place of work (IT industry) this was the norm and still is as they had another round since then. If you had a contract they will pay whatever the notice period is as stated but if its does not mention notice period I believe the default for the first two years of employment is 1 week so it appears that they are within their rights.


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## NovaFlare77 (20 Jul 2009)

According page 24 of [broken link removed], you are entitled to a week's notice, or you may agree to take a week's payment in lieu of notice.

Page 25 also states that an employer is obliged to give notice of redundancy in writing, but this may only be the case if a redundancy payment is being made. In your case, the employer is not obliged to offer a redundancy payment as you were employed for less than 2 years.


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