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Jenny McKenzie
Jenny McKenzie,
Category: UK Employment Law
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Experience:  10 Years of experience in Employment Law and HR
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After 33 years of service I am at risk of being made redundant

Resolved Question:

After 33 years of service I am at risk of being made redundant on 31st July. I have had a company car since 1989 which has been available for private use. If I am being made redundant on 31st July, I will receive PILON. My employer states that because of this my employment will be terminated on 31st July and therefore I will have to return the Company Car on that day, not at the end of the 3 month notice period or receive any compensation for loss of use of the car for 3 months. I understand from the Government website that my benefits such as private medical insurance should continute for the notice period. Are the legally obliged to compensate me for loss of the car for the notice period or leave the car with me for the notice period?
Submitted: 1 year ago.
Category: UK Employment Law
Expert:  Jenny McKenzie replied 1 year ago.
Hello and welcome to Just Answer, is there a pay in lieu of notice clause in your contract? If so what is the wording of it?
Customer: replied 1 year ago.

Thanks - that's answered the question in itself....


 


'The Company reserves the right at its discresion to pay your salary in lieu of you contractual notice period. Please note that should this be the case your eligability for the Car Benefit Scheme will end on your leaving date.


Please note that the above provisions do not affect the Company's right of summarey dismissal for gross misconduct.'

Expert:  Jenny McKenzie replied 1 year ago.
Hi unfortunately that is right. Any claim for benefits during notice period is contractual. If the contract expressly states that the benefit is not payable during the PILON period then there is no claim if it is removed.

I am sorry to be the bearer of bad news.

If you have any follow on questions please ask. If I have answered your question I would be grateful if you would be so kind as to give my answer a positive rating. Thank you and all the best.
Jenny McKenzie,
Satisfied Customers: 5406
Experience: 10 Years of experience in Employment Law and HR
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Jenny McKenzie
Jenny McKenzie
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10 Years of experience in Employment Law and HR