Does anyone have any advice to offer in relation to payments during a redundancy.

One of our employees who we have just made redundant (we terminated his contract and gave him pay in lieu of notice – plus hols up to termination date and an SR Payment, plus bonus due)

He is claiming that the company owes him holiday for the unspent notice period of 14 weeks, plus the PILON payment should be tax free – as the PILON clause is not part of his contract.

I have taken legal advice, and it seems like a grey area – can anyone shed any light or have come across this situation at work?

I am positive that we do not owe him holiday pay for the notice period. Perhaps I am mistaken? All the redundancies in the past have signed CA’s – therefore making the notice tax free.

We have offered a compromise agreement to make it tax effecient but he has refused as he beleives that under the normal redundancy – he would be owed this amount anyway.

Help!

Thank you


Mandy Khabra