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SherylG1's avatar
SherylG1
User
2 years ago

Pay in lieu of notice

Hi

We have several employees that are being made redundant as of the 31/3. They are being paid a redundancy pay plus paid in lieu of notice. As this is the end of the financial year and they are being paid out in lieu of notice (which would be the month of April) do I need to pay them their notice period as a seperate pay in the new financial year? 

Having looked at previous messages, I'm thinking I need to pay 3 pays

1. Redundancy

2. Normal - final pay

3. Payment of notice period

Could someone please confirm this is correct?

Thank you. 

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  • jenniek's avatar
    jenniek
    Ultimate Partner
    2 years ago

    HI SherylG1 

    If you are paying the payment today (31/3/23) then you could do it all in one pay - but make sure the tax implications are correct. Redundancy has different tax maybe, and rest would be a lump sum payment so secondary tax. Also as the in lieu of notice, and annual leave owing will go over the Easter break, then you will need to pay the public holidays as well. The final pay comes after the in lieu of notice, because that will be included in the gross earnings calc for the final pay.