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Posted Wed, 02 Aug 2023 22:44:16 GMT by paul307130
An employee has a contractual notice period of 6 months but is initially placed on gardening leave for 2 months before being paid a PILON payment for termination of employment for the remainder of the notice period (unworked). In the PENP formula, do you calculate PENP in relation to the RTA with reference to the original contractual 6 month notice period or would you use 4 months - being the remaining notice period? (ie on the understanding that the 2 months garden leave is part of the original 6 month notice period).
Posted Fri, 04 Aug 2023 14:59:12 GMT by HMRC Admin 20
Hi paul307130.

If the employee was paid as normal during the gardening leave then you would just use the 4 months.

Thank you.


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