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Redundancy - NI issues.

My son has just been made redundant by a major credit card company because the management has decided to export all the work to Poland.

He will get a good redundancy package negotiated equally throughout the whole works but not all his leaving payment is being paid as redundancy pay, some three months salaries worth is being paid as pay in lieu of notice.

I told him he should immediately claim job seekers allowance but he says he can't on account of him receiving pay in lieu of notice. I said he's either employed or he isn't, if he is employed his erstwhile employer should pay and deduct his NI contributions and AFAIK they are not doing this.

Is the above correct? Comments and suggestions please.

Derek G

Reply to
Derek Geldard
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I think* that:

a. pay in lieu of notice is treated by the JSA Regs. as compensation b. awards of compensation are treated as earnings for the purposes of determining earnings

from which it follows that on balance, taking one thing with another, and having regard to the fact that is is Friday evening and the bottle is open, your son appears to be the better bet.

That said, his entuitlement to JSA has little** to do with the deduction of NI from his PILON so I may have misunderstood the question.

*with the assistance of a quick look at Chapter 26 of the decision maker's guide -
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if you are feeling brave and courageous ;)

**I know that those NICs might may affect entitlement to contributions based JSA but that is v much at the margins

Reply to
Robin

Whether you are correct or not, as far as the BA (is it still called that) is concerned, he isn't entitled to a penny until the period for which he has received PILON has expired

tim

Reply to
tim....

As I remember it, from almost 20 years ago, I didn't get any benefits in cash, because of the pay in lieu of notice, but I did get NI credits.

Reply to
David Woolley

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