Payment In Lieu of Notice for Redundancy and Public Holidays Within that Period

Q: We have an Employee who has just been made redundant and their last day was Tuesday 3.12.24 and I have been instructed to pay 4 Weeks In Lieu of Notice.

The 4 weeks’ notice period being paid will be 4.12.24 to 31.12.24 – within this period there are Christmas and Boxing Day – do I need to take the public holidays into consideration when making the payment for the 4 weeks in lieu of notice?  Ie. extending the date out to 2.1.25 (and therefore have to pay all 4 public holidays in their final pay?).

The Employee has a negative entitled leave balance.



A:
 If you pay notice in lieu, you have paid out the obligation of notice, so the employee does not work it. They do not get the PH in that period. Only annual holiday entitlement will extend forward.

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