Pay in lieu of notice and holiday pay

[assa99]

Brother in law is being made redundant. He has been told to finish before his official notice period would be up and that he will be paid PILON (pay in lieu of notice) for the remaining period, and will also have accrued holidays paid up. Both will be subject to tax/prsi/usc. We are wondering about two things:
1. when he signs on for unemployment benefit will his claim be allowed from when he actually finishes or will he have to wait until his official notice period is finished?
2. can he make pension payments based on the PILON and holiday money and get the tax relief for those as well as his 'normal' salary?
Thanks

 

[joecoie]

Hi assa99, my experience of similar situation in Feb this year is for;
1. that you sign on for JSB as soon as your employment ends, the company should have listed this date in the initial notice of redundancy (consultation) document package. The date will be confirmed in the termination documents he gets at end of consultation period -2 weeks in my case.
2. not sure - I think so & included these in my calculation- but waiting to get this confirmed.

I'm just about to post a related question on maximising pension payments in year of redundancy which you should have a look at & hopefully answers given.

 

[Salvadore]

can he make pension payments based on the PILON and holiday money and get the tax relief for those as well as his 'normal' salary?

These form part of his period of employment with the company so should be treated the same as all other parts.