Sick pay in your Notice Period
When should you receive full pay during your notice period?
If you are off sick and you have gone down to reduced pay, and then you hand in your notice, should you receive only sick pay during your notice period, or should you receive full pay?
The answer depends on the length of your notice. According to the Employments Right Act ss.86-89, if your notice period is a week or less above the statutory notice period, then you will be entitled to receive full pay throughout your notice period, despite being absent due to sickness or injury.
If on the other hand your notice period is over a week above the statutory minimum notice period, then you cannot benefit from the provisions of the ERA ’96 and you will only be entitled to receive your contractual sick pay (or SSP as the case may be).
To work out the statutory minimum notice period, figure out the amount of time worked for your employer, as the amount of time you have worked for your employer has an impact on the minimum length of the notice period granted to you. If you have worked for your employer for one month or more, your notice period must be at least a week. If it’s between one month and 2 years, you are entitled to one week’s notice. For anything above 2 years’ service, you are entitled to one week per year worked, up to a maximum of 12 weeks for 12 years or more of continuous employment. So if you have worked for seven and a half years, you are entitled to 7 weeks’ notice. This minimum applies no matter what your contract says.
If you realise that you were not paid your full pay when you should have been entitled to it, you should contact your employer immediately. If they do not acknowledge their mistake and refuse to pay your full pay, you have an employment dispute on your hands. We may also be able to arrange for your notice pay to be paid tax free. And if your employer refuses to play fair we can take your case to the Employment Tribunal.
If you want to discuss this or any other settlement agreement query, call us 0800 533 5134 or 020 7717 5259 or click here to arrange a call at a convenient time.