Register | Forgotten password?

Job Hunting
In Work
Thinking About Quitting

being finished on grounds of ill i entitled to pay in leiu of notice?

being finished on grounds of ill i entitled to pay in leiu of notice?

hi all, i have been off work sick for some time now. The decision has been made by me and work that i wont be going back.

we have spoken about having my contract terminated on grounds of ill health. as well as other options

I am awiating a letter detailing what i will be entitled to, but in the meantime i hope someone can assist

I know i will be entitled to any outstanding holidays i have not taken, but would i be entitled to and pay in leiu of notice or not?

My contract states that i must give my employer 1 months notice to end my contract, and they muct give me the same to terminate from their end, but it states nothing about ill health termination.

I only get SSP at the minute so if i am entitled to anything would this be at ssp rate or contractual rate?

there is also the option of redundancy but that will be next year, so i am trying to figure out what i am entitled to with the ill health as i have already been given the redundancy figures - really i am trying to compare the 2 and get the best financial outcome for me and my family.

I have contacted HR but have just been told that the letter will detail all i need to know, but i wont get this til next week, possibly the week after - hence asking for assistance here

thanks in advance


12/9/2009 9:50:08 AM


I'm very puzzled as to whether your employer is dismissing you, or whether you are resigning voluntarily.

It very usually has to be either one or the other, but, in your circumstances, the very worst thing you can do potentially, in financial terms, is to resign.

You and employer need to be very clear that this isn't a resignation.

If it isn't, then you're protected by unfair dismissal rights (assuming a year or more service; disability discrimination act possibly and to your full pay during notice.

Do you have a stated contractual notice entitlement and how long have you worked there ?


12/9/2009 10:17:25 AM

We are in agreement i will not be returning and they will be the ones terminating my contract. They did make it clear to me not to resign. I have been told that redundancies will be made in new year so if i like i can hang on and be made redundant. They have told me to look at what option is best for me. I realise taht the termination will not look good on my cv, but i am not too concerned about that at the minute as i hope, in the future, to be able to be fit enough to work for the family business, if my health allows


12/9/2009 10:23:33 AM

'stated contractual notice entitlement 'sorry, not too sure what this means, my contratc states i or my employer must give 1 months notice to terminate employment. I have worked there almost 3 years


12/9/2009 10:26:53 AM

A bit clearer now !

If everyone is really clear that they are dismissing you, then as an ill-health (technically, 'capability') dismissal, you'll be entitled to a month's notice with full pay.

If it were through redundancy, you'll be entitled to 2.5 to 4.5 week's pay as statutory redundancy, tax-free and the exact level depending on your age and 'capped' at £380 a week. In addition, you'll be entitled to notice exactly like the ill-health.

Assume you are not in any pension or health insurance scheme that might have faculities for ill-health retirement but in any event it will be far easier as regards state benefits if you are indeed dismissed.

By agreeing to 'go quietly' you are doing your employers a big favour and potentially giving-up some valuable rights, so they ought to be fairly generous.

A lawyer might advise them to do this as a 'compromise agreement' in order to guarantee that you won't subsequently try to claim unfair dismissal. The advantages of a compromise agreement include the fact they're free of tax, whilst what you get during notice might not be (but might be).


12/9/2009 10:54:10 AM

I think you probably need to ask your employer what they intend doing in this situation.

I get involved tangentially in quite a lot of similar situations, and as a rule of thumb the company are quite flexible about how they treat the individual concerned, trying to balance the need to terminate somebody who will not be able to return to work against the exit that will provide the highest benefits to the employee (ill health pension/redundancy/union agreed termination payments/PILON). Of course, that's just my company, and yours could be very different.

Bubbles makes very valid points centered around the minimum requirements that the employer has to meet, and the potential for negotiation. But it may be that the company exceeds these requirements, or is more flexible.

So, for example, in both ill health termination and redundancy you should be paid for your notice period, but you may be expected to "work" this (obviously in practice you would be off sick) rather than receiving a payment in lieu. Similarly, while there is no requirement to make you redundant if you are being terminated because of ill health, your employer may be saying that they are happy to process it as a redundancy if this then triggers a higher payment (I know my company would agree to this if the circumstances allowed it).

So, at this stage I think you probably need to speak to your company and get them to give you clear answers about how you will be treated, and what they will allow.

monkey steve

12/9/2009 11:24:48 AM