This blog looks at what payments you should receive if you are dismissed from your employment, and what to do if you have not been paid properly.
Redundancy
If your employment has been terminated on grounds of redundancy, then you should receive the following payments:
- Your usual salary up to the termination date
- Your notice pay.
- Any accrued holiday pay
- Your Statutory Redundancy payment.
In respect of your notice pay, there are two further considerations to be mindful of.
- Firstly, the amount of notice pay. If you have a contract of employment, then you should receive the contractual notice you are entitled to under that contract. If you do not have a contract of employment, then you will be entitled to your statutory notice period.
- Secondly, consider how your notice period will be dealt with. Your employer can pay your notice through passage of time. This means you remain employed for the duration of your notice period and either carry on working as usual or be placed on garden leave. In the alternative, your employer may be able to pay your notice as a payment in lieu of notice. This is commonly referred to as a PILON. Your contract of employment will need to state that your employer can pay your notice as a payment in lieu. Under this option, your employment will come to an end immediately and you are not required to work your notice period. Instead, you are paid your notice period as a lump sum payment
Capability
If your employment has been terminated on grounds of capability and/or sickness absence, then you should receive the following payments:
- Your usual salary up to the termination date
- Your notice pay.
- Any accrued holiday pay
Misconduct
If your employment has been terminated of grounds of misconduct with notice, then you should receive the following payments:
- Your usual salary up to the termination date
- Your notice pay.
- Any accrued holiday pay
However, if your employment is terminated on grounds of gross misconduct (sometimes referred to as being summarily dismissed), then you will only be entitled to:-
- Your usual salary up to the termination date
- Any accrued holiday pay.
It is therefore important in any misconduct dismissal to gain clarity on whether your dismissal is with or without notice as that will determine the payments you are entitled to.
I Don’t Think I Have Been Paid Correctly – What Can I Do?
My first recommendation would be to contact your employer as soon as you become aware of any errors in your final pay. You should raise your concerns formally and in writing, explaining why you believe you have been paid incorrectly. Hopefully, any mistakes or administrative errors can be rectified swiftly, and you will receive the payment due.
However, if your employer continues to refuse to pay the correct amounts due when your employment ends, then you may be able to bring one or more of the following claims: –
- Wrongful Dismissal / Breach of Contract
- Unlawful Deductions from Wages
- Failure to Pay Statutory Redundancy Payment
There are strict time limits in which you can bring a claim at the Employment Tribunal. You must start the litigation process by registering your claim with ACAS Early Conciliation within 6 months less one day from your termination date (provided your termination date was on or after 1 October 2026. If you termination date was before 01 October 2026, your time limit will be different. Therefore, please take specialist legal advice as soon as possible.)
Lincs Law Employment Solicitors Can Help You
If you would like further advice on the termination of your employment, please call 01522 440512 for a no-obligation, free telephone consultation. For more information on the services we offer, please visit our website: https://lincslaw.co.uk/services/employees/
Jasmine Stewart
Specialist Employment Solicitor
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