# Can Employer enforce payment in lieu of notice?



## waom (6 Feb 2010)

My partner is being made redundant and is concerned that her employer will force her to leave immediately and pay her in lieu of notice. As a result she could lose our on her her pension entitlement, PRSI insurable weeks and BIK for the notice period. Tax relief would also be lower as she would just miss out on a "whole" year in calculating SCSB relief.

Can the employer do this unilaterally or is payment in lieu of notice only enforceable if both parties agree?

If employer cannot do this unilaterally, is my partner entitled to insist that she be paid normally for the notice period in her contract (3 months) as opposed to the shorter statutory notice period (8 weeks)?


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## zippitydooda (11 Feb 2010)

You need to check her contract termination clause to see if it explicity states that the employer reserves the right to pay her in lieu of notice...if it does, then you can't argue (and PILOU is completely taxable), if it doesn't then she can get it paid tax free which may be more beneficial than having the extra few weeks insurable?


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## waom (14 Feb 2010)

zippitydooda said:


> You need to check her contract termination clause to see if it explicity states that the employer reserves the right to pay her in lieu of notice...if it does, then you can't argue (and PILOU is completely taxable), if it doesn't then she can get it paid tax free which may be more beneficial than having the extra few weeks insurable?


 
This makes sense. Many thanks for your advice. Loss of a "full" year in SCSB tax relief calculation is the big issue, so saying no to PILOU (not in contract) is best option.


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