P45 - date of cessation when paid in lieu

G

GoldCircle

Registered User
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Hi All,

I handed in my notice some time ago and was not required to work my period of notice (8 weeks) and was "walked" to the door.

My P45 indicates a date of cessation at the end of the 8 week notice period and the employer is refusing to change this.

I maintain that cessation was on the day I was walked. Revenue have told me it is "probably correct" to date it on the actual day of departure but won't commit in writing. The social welfare are saying that I am technically still employed in their eyes, until I can get the P45 changed and thus don't qualify for UB.

I was paid out fairly quickly and am not waiting for 2 further pay packets over 8 weeks. (Should the 8 weeks lump payment in lieu have been tax free, or subject to reliefs?)

Any thoughts, comments or advice is welcome.
 
If you've been paid for this period, then you don't qualify for UB during it too. Your employer is correct, your cessation date is the end of the 8 week period, as they are still paying you during it.
Essentially, from a revenue & welfare point of view, its all the same to them whether you're in the office or sitting at home for the 8 weeks.
 
Your P45 will show the date that you were paid to and this is the date that SW will take as "date of last employment" for SW purposes. It is irrelevent to them whether you worked or not in that period.
 
My understanding with pay in lieu is the both parties to the contract are mutually agreeing to terminate the contract early and thus, the earlier date represents the date of cessation.

Otherwise, a situation of garden leave would apply and payments should continue as normal, until the end of the contract.

Revenue actually put an instruction down on paper for me today to ask the company to change the date to the earlier date.
 
should you received 8 weeks allowances in this case??? I would have thought you should but don't know. just wondering.
 
GoldCircle said:
My understanding with pay in lieu is the both parties to the contract are mutually agreeing to terminate the contract early and thus, the earlier date represents the date of cessation.

Otherwise, a situation of garden leave would apply and payments should continue as normal, until the end of the contract.

Revenue actually put an instruction down on paper for me today to ask the company to change the date to the earlier date.
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I would agree here. The 8 weeks pay is compensation for early loss of office. It is not paid employment. If you start work immediately in a new job you won't get 8 extra weeks of PRSI stamps on top of the 8 that your employer presumably gave you. In that case you would end up with 60 weeks!
But SW may reasonably refuse you UB on the basis that you have means if they know about the 8 weeks pay (under normal circumstances they would not know this)
 
Did you receive 8 weeks pay in a lump sum or are you being paid for the next eight weeks?
 
Aidan119
UB or as it is now know as JB is not a means tested payment so it is (financially) irrelevant to Social Welfare whether he got 8 weeks payment or not.
They are only interested in the last day of work as stated on that P45 as the following day becomes the first day of eligibility for JB
 
I presented my "new" P45 with the early date on it - I was asked to sign on 4 or 5 lines on the signing on card today and was told that I would receive a judgement by post in a few days. I'll let you know the outcome to round off the discussion - thanks everyone for the opinions.
 
Yes, all my benefits were paid to me backdated to the date I was walked to the door, so for me the following has been the case:

Being walked to the door indicates cessation of employment, regardless of the notice period (unless garden leave is indicated in writing, in which case you are not unemployed)
P.45 should be dated accordingly (or alternatively to the date of last payment)
The payment in lieu is thus not relevant to SW, as it is payment accrued before being unemployed
Benefits are available, subject to the usual criteria
 
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