ESC

Click the "allow" button if you want to receive important news and updates from immigrationboards.com


Immigrationboards.com: Immigration, work visa and work permit discussion board

Welcome to immigrationboards.com!

Login Register Do not show

Severance Pay

Archived UK Tier 1 (General) points system forum. This route no longer exists.

Moderators: Casa, push, JAJ, ca.funke, Amber, zimba, vinny, Obie, EUsmileWEallsmile, batleykhan, meself2, geriatrix, John, ChetanOjha, archigabe, Administrator

Locked
dhruv
Junior Member
Posts: 70
Joined: Wed Jul 21, 2010 1:21 pm

Severance Pay

Post by dhruv » Thu Aug 12, 2010 8:50 am

Hi Guys,

I was laid off in june and was paid one month severance pay. Can i use as earnings to claim points?

I will appreciate your help.

Thanks

aruni4470
Diamond Member
Posts: 1615
Joined: Fri Nov 16, 2007 9:54 pm
Location: Cambridgeshire

Re: Severance Pay

Post by aruni4470 » Thu Aug 12, 2010 9:08 am

dhruv wrote:Hi Guys,

I was laid off in june and was paid one month severance pay. Can i use as earnings to claim points?

I will appreciate your help.

Thanks
If it is redundancy pay then no you cannot use it as earnings, if it is payment in lieu of notice then you can use it as earnings. Have you got any document defining the payment?

dhruv
Junior Member
Posts: 70
Joined: Wed Jul 21, 2010 1:21 pm

Re: Severance Pay

Post by dhruv » Thu Aug 12, 2010 9:42 am

aruni4470 wrote:
dhruv wrote:Hi Guys,

I was laid off in june and was paid one month severance pay. Can i use as earnings to claim points?

I will appreciate your help.

Thanks
If it is redundancy pay then no you cannot use it as earnings, if it is payment in lieu of notice then you can use it as earnings. Have you got any document defining the payment?
I have a letter which says that I had received severance pay because of being laid off. Do you think it will be considered? this payment was not accumulated due to holidays etc

geriatrix
Moderator
Posts: 24755
Joined: Fri Mar 17, 2006 3:30 pm
Location: does it matter?

Post by geriatrix » Thu Aug 12, 2010 9:44 am

No, as aruni4470 has already suggested.
aruni4470 wrote:If it is redundancy pay then no you cannot use it as earnings,
regards

dhruv
Junior Member
Posts: 70
Joined: Wed Jul 21, 2010 1:21 pm

Post by dhruv » Thu Aug 12, 2010 10:15 am

Lets discuss these points:

From Tier 1 Manual: payment in lieu of notice (a payment made • instead of requiring an employee to work the normal period of notice when leaving a job). ( They accept this as earnings)

Now lets define payment in Lieu of notice:

Payment in lieu of notice is an employment law term, particularly in United Kingdom labour law, which means "pay instead of advance notice that your job will end." It could also be called severance pay. ( Good Old Wiki)

Now what do you guys suggest?

geriatrix
Moderator
Posts: 24755
Joined: Fri Mar 17, 2006 3:30 pm
Location: does it matter?

Post by geriatrix » Thu Aug 12, 2010 10:20 am

You need to understand the difference between payment (by current employer to you) on account of being laid off / fired and payment (by new employer to you to pay your existing employer) in lieu of serving notice period subsequent to resignation.
dhruv wrote:Now what do you guys suggest?
Same! The risk is yours and so is the decision.


regards

aruni4470
Diamond Member
Posts: 1615
Joined: Fri Nov 16, 2007 9:54 pm
Location: Cambridgeshire

Post by aruni4470 » Thu Aug 12, 2010 11:02 am

dhruv wrote:Lets discuss these points:

From Tier 1 Manual: payment in lieu of notice (a payment made • instead of requiring an employee to work the normal period of notice when leaving a job). ( They accept this as earnings)

Now lets define payment in Lieu of notice:

Payment in lieu of notice is an employment law term, particularly in United Kingdom labour law, which means "pay instead of advance notice that your job will end." It could also be called severance pay. ( Good Old Wiki)

Now what do you guys suggest?
Severance pay can include 'Redundancy Pay' and/or 'payment in lieu of notice', that was the reason I asked if you have any document defining the payment.

Redundancy pay is what an employer pays when an employee is made redundant. (The employer has the obligation of paying this only if the employee has worked for more than 2 yrs with that employer)

Payment in lieu of notice is what the employer pays when he wants you to leave the company immediately without serving the notice period and pay for that period.

So get a clarity first whether this is 'redundancy pay' or ''payment in lieu of notice'

dhruv
Junior Member
Posts: 70
Joined: Wed Jul 21, 2010 1:21 pm

Post by dhruv » Thu Aug 12, 2010 11:48 am

aruni4470 wrote:
dhruv wrote:Lets discuss these points:

From Tier 1 Manual: payment in lieu of notice (a payment made • instead of requiring an employee to work the normal period of notice when leaving a job). ( They accept this as earnings)

Now lets define payment in Lieu of notice:

Payment in lieu of notice is an employment law term, particularly in United Kingdom labour law, which means "pay instead of advance notice that your job will end." It could also be called severance pay. ( Good Old Wiki)

Now what do you guys suggest?
Severance pay can include 'Redundancy Pay' and/or 'payment in lieu of notice', that was the reason I asked if you have any document defining the payment.

Redundancy pay is what an employer pays when an employee is made redundant. (The employer has the obligation of paying this only if the employee has worked for more than 2 yrs with that employer)

Payment in lieu of notice is what the employer pays when he wants you to leave the company immediately without serving the notice period and pay for that period.

So get a clarity first whether this is 'redundancy pay' or ''payment in lieu of notice'
Hi Arun

Thanks for clarifying. Employer didn't give any notice and asked to leave company immediately. So, by definition it should not be considered as Redundancy Pay and should be counted as earnings. What do you suggest?

Regards

aruni4470
Diamond Member
Posts: 1615
Joined: Fri Nov 16, 2007 9:54 pm
Location: Cambridgeshire

Post by aruni4470 » Thu Aug 12, 2010 1:06 pm

You should know about it. Check your payslips or document that clarifies the point. Also think about the proof you are going to show that this is given to you as payment in lieu of notice.

dhruv
Junior Member
Posts: 70
Joined: Wed Jul 21, 2010 1:21 pm

Post by dhruv » Thu Aug 12, 2010 3:52 pm

aruni4470 wrote:You should know about it. Check your payslips or document that clarifies the point. Also think about the proof you are going to show that this is given to you as payment in lieu of notice.
Thanks man. I have a letter which states salary withdrawn and also "one month salary paid as payment made in lieu of notice". These are the exact words in that single letter. Please let me know if this is sufficient.

Appreciate your help

aruni4470
Diamond Member
Posts: 1615
Joined: Fri Nov 16, 2007 9:54 pm
Location: Cambridgeshire

Post by aruni4470 » Thu Aug 12, 2010 4:07 pm

dhruv wrote:
aruni4470 wrote:You should know about it. Check your payslips or document that clarifies the point. Also think about the proof you are going to show that this is given to you as payment in lieu of notice.
Thanks man. I have a letter which states salary withdrawn and also "one month salary paid as payment made in lieu of notice". These are the exact words in that single letter. Please let me know if this is sufficient.

Appreciate your help
If the salary is made in lieu of notice, yes you can claim it as previous earnings.

123. Earnings may include, among other things:
• salaries (includes full-time, part-time, and bonuses);
• earnings from self-employment;
• earnings from business activities;
• statutory maternity pay and contractual maternity pay;
• allowances (such as accommodation, schooling or car allowances) that form part of an applicant’s remuneration package;
• dividends paid by a company in which the applicant is active in the day-to-day management, or where the applicant receives the dividend as part or all of his/her remuneration package;
• income from property rental, where this forms part of the applicant’s business; and
• payment in lieu of notice (a payment made instead of requiring an employee to work the normal period of notice when leaving a job).

http://bia.homeoffice.gov.uk/siteconten ... idance.pdf

geriatrix
Moderator
Posts: 24755
Joined: Fri Mar 17, 2006 3:30 pm
Location: does it matter?

Post by geriatrix » Thu Aug 12, 2010 4:11 pm

dhruv wrote:I have a letter which states salary withdrawn and also "one month salary paid as payment made in lieu of notice". These are the exact words in that single letter. Please let me know if this is sufficient.
Only if you had mentioned this fact in the opening post! When your document(s) show the paymout as "payment in lieu of notice" and there is no mention of "severance pay", you should be okay.


regards

dhruv
Junior Member
Posts: 70
Joined: Wed Jul 21, 2010 1:21 pm

Post by dhruv » Mon Aug 16, 2010 11:09 am

sushdmehta wrote:
dhruv wrote:I have a letter which states salary withdrawn and also "one month salary paid as payment made in lieu of notice". These are the exact words in that single letter. Please let me know if this is sufficient.
Only if you had mentioned this fact in the opening post! When your document(s) show the paymout as "payment in lieu of notice" and there is no mention of "severance pay", you should be okay.


regards
Hey Arun,

Thanks for your help. I received the letter from my employer and these are the words in the letter

"Mr. _____ ______'s employment was ended by _______ without any prior notice and as per company policy he was eligible for a payment in lieu of notice.
For the month of June 2010 his gross salary included actual salary earned amounting to INR 60,000 and payment in lieu of notice of INR 60,000. His annual salary with ____________was INR 720,000. The details of salary earned for the respective month are provided below:"

hope this will be acceptable.

aruni4470
Diamond Member
Posts: 1615
Joined: Fri Nov 16, 2007 9:54 pm
Location: Cambridgeshire

Post by aruni4470 » Mon Aug 16, 2010 12:50 pm

The letter clearly states that it is pay in lieu of notice so, you can include it in your previous earnings.

If you are using the same letter as evidence of previous earnings, make sure there are no mistakes. Your gross and net salaries are mentioned and the net salary figures should match the salary deposits in your bank statements.

dhruv
Junior Member
Posts: 70
Joined: Wed Jul 21, 2010 1:21 pm

Post by dhruv » Thu Aug 19, 2010 9:15 am

Hey Guys,

The final salary and payment made in lieu of notice to me was not taxed or TDS was not deducted. So basically gross amount and net amount is the same.

Do you think the case worker will raise a question regarding this issue?

Please advise.

Dhruv

Locked
cron